Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 30, 2018 | Aug. 17, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | BRIGGS & STRATTON CORPORATION | ||
Entity Central Index Key | 0000014195 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Entity Registrant Name | BRIGGS & STRATTON CORPORATION | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 42,055,973 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 561,600,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | $ 29,569 | $ 44,923 |
Receivables, Less Reserves of $2,645 and $2,806, Respectively | 198,498 | 182,801 |
Inventories: | ||
Finished Products | 344,277 | 290,108 |
Work in Process | 145,182 | 111,409 |
Raw Materials | 12,547 | 10,314 |
Total Inventories | 502,006 | 411,831 |
Prepaid Expenses and Other Current Assets | 32,404 | 39,651 |
Total Current Assets | 762,477 | 679,206 |
GOODWILL | 169,682 | 163,200 |
Investments | 49,641 | 50,960 |
OTHER INTANGIBLE ASSETS, Net | 96,738 | 95,864 |
LONG-TERM DEFERRED INCOME TAX ASSET | 43,172 | 12,149 |
OTHER LONG-TERM ASSETS, Net | 18,676 | 20,507 |
PLANT AND EQUIPMENT: | ||
Land and Land Improvements | 15,210 | 15,188 |
Buildings | 137,704 | 134,896 |
Machinery and Equipment | 1,031,523 | 879,535 |
Construction in Progress | 35,902 | 145,546 |
Plant and Equipment before Accumulated Depreciation | 1,220,339 | 1,175,165 |
Less - Accumulated Depreciation | 809,294 | 753,085 |
Total Plant and Equipment, Net | 411,045 | 422,080 |
TOTAL ASSETS | 1,551,431 | 1,443,966 |
CURRENT LIABILITIES: | ||
Accounts Payable | 287,620 | 204,173 |
Short-Term Debt | 160,540 | 48,036 |
Accrued Liabilities: | ||
Wages and Salaries | 24,781 | 41,136 |
Warranty | 28,030 | 29,546 |
Accrued Postretirement Health Care Obligation | 6,760 | 8,418 |
Other | 70,014 | 52,797 |
Total Accrued Liabilities | 129,585 | 131,897 |
Total Current Liabilities | 577,745 | 384,106 |
ACCRUED PENSION COST | 221,033 | 189,872 |
ACCRUED EMPLOYEE BENEFITS | 21,311 | 20,196 |
ACCRUED POSTRETIREMENT HEALTH CARE OBLIGATION | 25,929 | 30,186 |
ACCRUED WARRANTY | 19,572 | 15,781 |
OTHER LONG-TERM LIABILITIES | 44,152 | 33,447 |
Long-Term Debt | 194,969 | 199,954 |
SHAREHOLDERS' INVESTMENT: | ||
Common Stock - Authorized 120,000 Shares $.01 Par Value, Issued 57,854 Shares | 579 | 579 |
Additional Paid-In Capital | 78,902 | 76,408 |
Retained Earnings | 993,873 | 1,071,480 |
Accumulated Other Comprehensive Loss | (292,550) | (252,272) |
Treasury Stock at Cost, 15,074 and 14,675 Shares, Respectively | (334,084) | (325,771) |
Total Shareholders' Investment | 446,720 | 570,424 |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | $ 1,551,431 | $ 1,443,966 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Receivables, Less Reserves | $ 2,608 | |
Common Stock, shares authorized | 120,000 | |
Common Stock, par value | $ 0.01 | |
Common Stock, shares issued | 57,854 | |
Treasury Stock, shares | 15,237 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Statement [Abstract] | |||
Cost of Goods and Services Sold | $ 1,535,554 | $ 1,483,212 | $ 1,402,274 |
Revenues | 1,836,605 | 1,881,294 | 1,786,103 |
Gross Profit | 301,051 | 398,082 | 383,829 |
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 349,276 | 375,230 | 300,062 |
Equity in Earnings of Unconsolidated Affiliates (Prospectively classified in Operating Income beginning in Q3 fiscal year 2016) | 9,029 | 9,257 | 11,056 |
Income from Operations | (39,196) | 32,109 | 94,823 |
INTEREST EXPENSE | (29,242) | (25,320) | (20,293) |
OTHER INCOME, Net | 340 | 4,312 | 5,131 |
Income Before Income Taxes | (68,098) | 11,101 | 79,661 |
PROVISION FOR INCOME TAXES | (14,015) | 22,421 | 23,011 |
NET INCOME | $ (54,083) | $ (11,320) | $ 56,650 |
EARNINGS PER SHARE DATA | |||
Basic Earnings Per Share (in dollars per share) | $ (1.31) | $ (0.28) | $ 1.31 |
Diluted Earnings Per Share (in dollars per share) | $ (1.31) | $ (0.28) | $ 1.31 |
Basic Weighted Average Shares Outstanding (in shares) | 41,647 | 42,068 | 42,178 |
Diluted Average Shares Outstanding (in shares) | 41,647 | 42,068 | 42,263 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net Income (Loss) | $ (54,083) | $ (11,320) | $ 56,650 |
Other Comprehensive Income (Loss): | |||
Cumulative Translation Adjustments | (2,839) | (4,184) | (881) |
Unrealized Gain (Loss) on Derivatives Instruments, Net of Tax Provision (Benefit) of $886, ($1,659), and $1,435, respectively | (13,552) | 6,562 | 1,476 |
Unrecognized Pension & Postretirement Obligation, Net of Tax Provision (Benefit) of $22,697, ($31,098), and ($33,737), respectively | (23,887) | 45,376 | 37,829 |
Other Comprehensive Income (Loss) | (40,278) | 47,754 | 38,424 |
Total Comprehensive Income (Loss) | $ (94,361) | $ 36,434 | $ 95,074 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Income (Loss) Parenthetical - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Statement of Other Comprehensive Income (Loss) [Abstract] | |||
Unrealized Gain (Loss) on Derivative Instruments Tax Provision (Benefit) | $ 2,552 | $ 886 | |
Unrecognized Pension & Postretirement Obligation Tax Provision (Benefit) | $ 17,646 | $ 22,697 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Investment - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
BALANCES | $ 570,424 | $ 559,334 | $ 493,626 | |
Net Income (Loss) | (54,083) | (11,320) | 56,650 | |
Other Comprehensive Income (Loss), Net of Tax | (40,278) | 47,754 | 38,424 | |
Cash Dividends Paid | (23,304) | (23,951) | (24,054) | |
Stock Option Activity, Net of Tax | 3,794 | 5,832 | 6,923 | |
Restricted Stock | (2,482) | (1,356) | (933) | |
Amortization of Unearned Compensation | 3,029 | 3,770 | 3,336 | |
Deferred Stock | 117 | 160 | 1,020 | |
Deferred Stock - Directors | 1,440 | 513 | 4,022 | |
Treasury Stock Purchases | (11,937) | (10,312) | (19,680) | |
BALANCES | 446,720 | 570,424 | 559,334 | |
Common Stock [Member] | ||||
BALANCES | 579 | 579 | 579 | |
Net Income (Loss) | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | |
Cash Dividends Paid | 0 | 0 | 0 | |
Stock Option Activity, Net of Tax | 0 | 0 | 0 | |
Restricted Stock | 0 | 0 | 0 | |
Amortization of Unearned Compensation | 0 | 0 | 0 | |
Deferred Stock | 0 | 0 | 0 | |
Deferred Stock - Directors | 0 | 0 | 0 | |
Treasury Stock Purchases | 0 | 0 | 0 | |
BALANCES | 579 | 579 | 579 | |
Additional Paid-In Capital [Member] | ||||
BALANCES | 76,408 | 73,562 | 72,020 | |
Net Income (Loss) | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | |
Cash Dividends Paid | 0 | 0 | 0 | |
Stock Option Activity, Net of Tax | 1,932 | 1,889 | (1,628) | |
Restricted Stock | (2,871) | (3,119) | (3,439) | |
Amortization of Unearned Compensation | 3,029 | 3,770 | 3,336 | |
Deferred Stock | (403) | (489) | (655) | |
Deferred Stock - Directors | 807 | [1] | 795 | 3,928 |
Treasury Stock Purchases | 0 | 0 | 0 | |
BALANCES | 78,902 | 76,408 | 73,562 | |
Retained Earnings [Member] | ||||
BALANCES | 1,071,480 | 1,107,033 | 1,074,437 | |
Net Income (Loss) | (54,083) | (11,320) | 56,650 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | |||
Cash Dividends Paid | (23,304) | (23,951) | (24,054) | |
Stock Option Activity, Net of Tax | 0 | 0 | 0 | |
Restricted Stock | 0 | 0 | 0 | |
Amortization of Unearned Compensation | 0 | 0 | 0 | |
Deferred Stock | 0 | 0 | 0 | |
Deferred Stock - Directors | (282) | 0 | ||
Dividends paid to directors on deferred shares, non-cash | (220) | |||
Treasury Stock Purchases | 0 | |||
BALANCES | 993,873 | 1,071,480 | 1,107,033 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
BALANCES | (252,272) | (300,026) | (338,450) | |
Net Income (Loss) | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | (40,278) | 47,754 | 38,424 | |
Cash Dividends Paid | 0 | 0 | 0 | |
Stock Option Activity, Net of Tax | 0 | 0 | 0 | |
Restricted Stock | 0 | 0 | 0 | |
Amortization of Unearned Compensation | 0 | 0 | 0 | |
Deferred Stock | 0 | 0 | 0 | |
Deferred Stock - Directors | 0 | 0 | 0 | |
Treasury Stock Purchases | 0 | 0 | 0 | |
BALANCES | (292,550) | (252,272) | (300,026) | |
Treasury Stock [Member] | ||||
BALANCES | (325,771) | (321,814) | (314,960) | |
Net Income (Loss) | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | |
Cash Dividends Paid | 0 | 0 | 0 | |
Stock Option Activity, Net of Tax | 1,862 | 3,943 | 8,551 | |
Restricted Stock | 389 | 1,763 | 2,506 | |
Amortization of Unearned Compensation | 0 | 0 | 0 | |
Deferred Stock | 520 | 649 | 1,675 | |
Deferred Stock - Directors | 853 | 0 | 94 | |
Treasury Stock Purchases | (11,937) | (10,312) | (19,680) | |
BALANCES | $ (334,084) | $ (325,771) | $ (321,814) | |
[1] | (1) See Note 14 for additional discussion. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash Dividends Paid, per share | $ 0 | $ 0.56 | $ 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 30,342 | $ 49,218 | $ 61,707 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net Income (Loss) | (54,083) | (11,320) | 56,650 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||
Depreciation and Amortization | 64,200 | 58,258 | 56,183 | |
company share based comp expense | 7,180 | 6,675 | 4,923 | |
Pension Settlement Expense | 521 | 41,157 | 0 | |
Equity in Earnings of Unconsolidated Affiliates | (12,142) | (12,230) | (11,056) | |
Dividends Received from Unconsolidated Affiliates | 11,359 | 10,911 | 9,067 | |
Loss on Disposition of Plant and Equipment | 551 | 1,915 | 857 | |
Provision for Deferred Income Taxes | (17,949) | 35,351 | 10,316 | |
Change in Operating Assets and Liabilities: | ||||
Accounts Receivable | (15,910) | 47,180 | (41,655) | |
Inventories | (91,171) | (37,446) | 11,204 | |
Other Current Assets | (1,304) | (4,759) | (1,759) | |
Accounts Payable, Accrued Liabilities and Income Taxes | 80,717 | (10,345) | 8,152 | |
Other, Net | (7,304) | (2,624) | (12,538) | |
Net Cash Provided by Operating Activities | (35,335) | 92,723 | 90,344 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital Expenditures (1) | [1] | (52,454) | (103,203) | (83,141) |
Cash Paid for Acquisition, Net of Cash Acquired | (8,866) | (1,800) | 0 | |
Proceeds Received on Disposition of Plant and Equipment | 69 | 339 | 1,027 | |
Proceeds on Sale of Investment in Marketable Securities | 0 | 0 | 3,343 | |
Net Cash Used in Investing Activities | (61,251) | (104,664) | (78,771) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net Borrowings on Revolver | 112,504 | 48,036 | 0 | |
Proceeds from (Repayments of) Notes Payable | 0 | 7,685 | 0 | |
Repayments on Long-Term Debt | (5,424) | (22,261) | 0 | |
Debt Issuance Costs | 0 | (1,154) | 0 | |
Cash Dividends Paid | (17,781) | (23,951) | (24,054) | |
Stock Option Exercise Proceeds | 1,823 | 3,772 | 7,770 | |
Payments of Acquisition Contingent Liability | (925) | 0 | (1,625) | |
Payments Related to Tax Withholding for Stock Compensation | (257) | (1,396) | (1,750) | |
Treasury Stock Purchases | (11,937) | (10,312) | (19,680) | |
Net Cash Used in Financing Activities | 78,003 | 419 | (39,339) | |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (293) | (967) | (366) | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (18,876) | (12,489) | (28,132) | |
CASH AND CASH EQUIVALENTS: | ||||
Beginning of Year | 44,923 | |||
End of Year | 29,569 | 44,923 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 27,161 | 24,075 | 19,422 | |
Income Taxes Paid | $ 3,309 | $ 606 | $ 4,683 | |
[1] | (1) 1 Included within Beginning Cash, Cash Equivalents, and Restricted Cash is approximately $4.3 million and $0 of restricted cash as of July 1, 2018 and July 2, 2017, respectively. |
Nature Of Operations
Nature Of Operations | 12 Months Ended |
Jun. 30, 2019 | |
us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract | |
Nature of Operations | Nature of Operations: Briggs & Stratton Corporation (the “Company”) is a U.S. based producer of gasoline engines and outdoor power equipment. The Company’s Engines segment sells engines worldwide, primarily to original equipment manufacturers of lawn & garden equipment and other gasoline engine powered equipment. The Company’s Products segment designs, manufactures and markets a wide range of outdoor power equipment, job site products, and related accessories. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies: [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Fiscal Year: The Company’s fiscal year consists of 52 or 53 weeks, ending on the Sunday nearest the last day of June in each year. The 2019, 2018 and 2017 fiscal years were each 52 weeks long. All references to years relate to fiscal years rather than calendar years. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its majority owned domestic and foreign subsidiaries after elimination of intercompany accounts and transactions. Investments in companies for which the Company has significant influence are accounted for by the equity method. Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Cash and Cash Equivalents: This caption includes cash, commercial paper and certificates of deposit. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Receivables: Receivables are recorded at their original carrying value less reserves for estimated uncollectible accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. Inventories: Inventories are stated at cost, which does not exceed market. The last-in, first-out (LIFO) method was used for determining the cost of approximately 50% of total inventories at June 30, 2019 and 50% at July 1, 2018 . The cost for the remaining inventories was determined using the first-in, first-out (FIFO) method. If the FIFO inventory valuation method had been used exclusively, inventories would have been $70.1 million and $65.4 million higher at the end of fiscal 2019 and 2018 , respectively. The LIFO inventory adjustment was determined on an overall basis, and accordingly, each class of inventory reflects an allocation based on the FIFO amounts. Goodwill and Other Intangible Assets: Goodwill reflects the cost of acquisitions in excess of the fair values assigned to identifiable net assets acquired. Goodwill is assigned to reporting units based upon the expected benefit of the synergies of the acquisition. Other Intangible Assets reflect identifiable intangible assets that arose from purchase acquisitions. Other Intangible Assets are primarily comprised of tradenames, patents and customer relationships. Goodwill and tradenames, which are considered to have indefinite lives, are not amortized; however, both must be tested for impairment at least annually. Amortization is recorded on a straight-line basis for other intangible assets with finite lives. Patents have been assigned an estimated useful life of 15 years. Customer relationships have been assigned an estimated useful life of 14 to 25 years. The Company performed the required impairment tests in fiscal 2019 , 2018 and 2017 . There were no goodwill impairment charges or other intangible asset impairment charges recorded in fiscal 2019, fiscal 2018 or fiscal 2017. Investments: Investments represent the Company’s investments in unconsolidated affiliated companies. Financial information of the unconsolidated affiliated companies are accounted for by the equity method, generally on a lag of one month or less. Combined results of operations of unconsolidated affiliated companies for the fiscal year (in thousands): 2019 2018 2017 Results of Operations: Sales $ 311,373 $ 324,931 $ 321,938 Cost of Goods Sold 243,374 248,585 244,346 Gross Profit $ 67,999 $ 76,346 $ 77,592 Net Income $ 17,782 $ 22,158 $ 22,217 Combined balance sheets of unconsolidated affiliated companies as of fiscal year-end (in thousands): 2019 2018 Financial Position: Assets: Current Assets $ 147,702 $ 150,382 Noncurrent Assets 38,496 45,186 186,198 195,568 Liabilities: Current Liabilities $ 55,533 $ 54,007 Noncurrent Liabilities 14,599 20,027 70,132 74,034 Equity $ 116,066 $ 121,534 Net sales to equity method investees were approximately $87.7 million , $107.2 million and $113.6 million in 2019 , 2018 and 2017 , respectively. Purchases of finished products from equity method investees were approximately $122.5 million , $115.5 million and $94.9 million in 2019 , 2018 and 2017 , respectively. The Company uses the equity method to account for this investment, and the earnings of the unconsolidated affiliate are allocated between the Engines and Products segments. As of June 30, 2019 and July 1, 2018 , the Company's total investment in the venture was $25.7 million and $25.2 million , respectively, and its ownership percentage was 38.0% . The Company's equity method investments also include entities that are suppliers for the Engines segment. The Company concluded that its equity method investments are integral to its business. The equity method investments provide manufacturing and distribution functions, which are important parts of its operations. During fiscal 2016, the Company had an investment in marketable securities, which related to its ownership of common stock of a publicly-traded company. The Company classified its investment as available-for-sale securities, and it was reported at fair value. Unrealized gains and losses, net of the related tax effects, were reported as a separate component of Accumulated Other Comprehensive Income (Loss). During the fourth quarter of fiscal 2016, the Company sold its investment in marketable securities and recognized a gain of $3.3 million , which is recorded in Other Income, Net in the Consolidated Statements of Operations. The Company received proceeds related to the sale in the first quarter of fiscal 2017. Debt Issuance Costs: Direct and incremental costs incurred in obtaining loans or in connection with the issuance of long-term debt are capitalized and amortized to interest expense over the terms of the related credit agreements. The debt issuance costs are recorded as a direct deduction from the carrying value of the debt liability; however, the Company classifies debt issuance costs related to the revolving credit facility as an asset, regardless of whether it has any outstanding borrowings on the line of credit arrangements. Approximately $0.8 million , $0.9 million , and $0.9 million of debt issuance costs and original issue discounts were amortized to interest expense in each of fiscal years 2019 , 2018 and 2017 , respectively. Plant and Equipment and Depreciation: Plant and equipment are stated at historical cost. For financial reporting purposes, plant and equipment are depreciated primarily by the straight line method over the estimated useful lives of the assets which generally range from 3 to 15 years for software, from 20 to 40 years for land improvements, from 20 to 50 years for buildings, and 3 to 20 years for machinery and equipment. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in cost of goods sold or engineering, selling, general and administrative expenses. Depreciation expense was approximately $59.8 million , $53.8 million and $51.9 million during fiscal years 2019 , 2018 and 2017 , respectively. Impairment of Property, Plant and Equipment: Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Warranty: The Company recognizes the cost associated with its standard warranty on engines and products at the time of sale. The general warranty period begins at the time of sale and typically covers two years, but may vary due to product type and geographic location. The amount recognized is based on historical failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): 2019 2018 Balance, Beginning of Period $ 45,327 $ 43,108 Payments (23,939 ) (23,704 ) Provision for Current Year Warranties 24,454 24,436 Changes in Estimates 1,760 1,487 Balance, End of Period $ 47,602 $ 45,327 Income Taxes: The provision for income taxes includes federal, state and foreign income taxes currently payable and those deferred because of temporary differences between the financial statement and tax bases of assets and liabilities. The deferred income tax asset and liability represent temporary differences relating to assets and liabilities. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Retirement Plans: The Company has noncontributory, defined benefit retirement plans and postretirement benefit plans covering certain employees. Retirement benefits represent a form of deferred compensation, which are subject to change due to changes in assumptions. Management reviews underlying assumptions on an annual basis. Refer to Note 16 . Research and Development Costs: Expenditures relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred and recorded in engineering, selling, general and administrative expenses within the Consolidated Statements of Operations. The amounts charged against income were $22.8 million , $23.6 million and $23.0 million in fiscal 2019 , 2018 and 2017 , respectively. Advertising Costs: Advertising costs, included in engineering, selling, general and administrative expenses within the Consolidated Statements of Operations, are expensed as incurred. These expenses totaled $21.6 million in fiscal 2019 , $19.8 million in fiscal 2018 and $19.0 million in fiscal 2017 . Shipping and Handling Fees: Revenue received from shipping and handling fees is reflected in net sales and related shipping costs are recorded in cost of goods sold. Shipping fee revenue for fiscal 2019 , 2018 and 2017 was $5.6 million , $5.6 million and $5.0 million , respectively. Foreign Currency Translation: Foreign currency balance sheet accounts are translated into dollars at the rates of exchange in effect at fiscal year-end. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to a separate component of Shareholders’ Investment. Foreign currency transaction gains and losses are included in the results of operations in the period incurred. The Company recorded pre-tax foreign currency transaction gains of $0.9 million , $0.6 million , and $0.8 million during fiscal 2019 , 2018 , and 2017 , respectively. Earnings (Loss) Per Share: The Company computes earnings (loss) per share using the two-class method, an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company’s unvested grants of restricted stock, restricted stock units, and deferred stock awards contain non-forfeitable rights to dividends (whether paid or unpaid), which are required to be treated as participating securities and included in the computation of basic (loss) earnings per share. Information on earnings (loss) per share is as follows (in thousands except per share data): Fiscal Year Ended June 30, 2019 July 1, 2018 July 2, 2017 Net Income (Loss) $ (54,083 ) $ (11,320 ) $ 56,650 Less: Earnings Allocated to Participating Securities (576 ) (301 ) (1,274 ) Net Income (Loss) available to Common Shareholders $ (54,659 ) $ (11,621 ) $ 55,376 Average Shares of Common Stock Outstanding 41,647 42,068 42,178 Incremental Common Shares Applicable to Common Stock Options and Performance Shares Based on the Common Stock Average Market Price During the Period — — 85 Shares Used in Calculating Diluted Earnings Per Share 41,647 42,068 42,263 Adjustment for Participating Securities — — 792 Diluted Average Shares, Including Participating Securities 41,647 42,068 43,055 Basic Earnings (Loss) Per Share $ (1.31 ) $ (0.28 ) $ 1.31 Diluted Earnings (Loss) Per Share $ (1.31 ) $ (0.28 ) $ 1.31 The dilutive effect of the potential exercise of outstanding stock-based awards to acquire common shares is calculated using the treasury stock method. No options to purchase shares of common stock were excluded from the calculation of diluted earnings (loss) per share as the exercise prices were greater than the average market price of the common shares. Derivative Instruments & Hedging Activity: The Company enters into derivative contracts designated as cash flow hedges to manage certain interest rate, foreign currency and commodity exposures. Company policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into derivative instruments for trading purposes where the sole objective is to generate profits. The Company formally designates the financial instrument as a hedge of a specific underlying exposure and documents both the risk management objectives and strategies for undertaking the hedge. The Company formally assesses, both at the inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the forecasted cash flows of the related underlying exposure. Because of the high degree of effectiveness between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the forecasted cash flows of the underlying exposures being hedged. Derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities, measured at fair value. The effective portion of gains or losses on derivatives designated as cash flow hedges are reported as a component of Accumulated Other Comprehensive Income (Loss) (AOCI) and reclassified into earnings in the same periods during which the hedged transaction affects earnings. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized in earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised, the cash flow hedge is dedesignated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2019 | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU No. 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The guidance is effective beginning fiscal year 2020. The Company has assessed the ASU and has determined that the Company will not make the permitted reclassification. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting and Hedging Activities. ASU No. 2017-12 better aligns a Company's risk management activities and financial reporting for hedging relationships, in addition to simplifying certain aspects of ASC Topic 815. The guidance is effective beginning fiscal year 2020, with early adoption permitted. The Company adopted this ASU prospectively effective July 1, 2019 and this standard will not have a material impact on the Company's Condensed Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires an employer to disaggregate the service cost component from the other components of net periodic pension costs within the statement of income. The guidance is applied on a retrospective basis, and became effective for the Company in fiscal 2019. Accordingly, the Company adopted this ASU effective July 2, 2018. Non-service cost components of net periodic pension costs in the amount of $2.0 million have been included in Other Income in the Statement of Operations for the twelve months ended June 30, 2019. Non-service cost components of net periodic pension costs in the amount of $1.1 million have been included in Other Income in the Statement of Operations for the twelve months ended July 1, 2018. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. The guidance is effective beginning fiscal year 2021. Early adoption is permitted. The Company adopted this ASU prospectively effective July 1, 2019 and this standard will not have a material impact on the Company's Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Certain qualitative and quantitative disclosures are required, as well as a modified retrospective recognition and measurement of impacted leases. The guidance is effective beginning fiscal year 2020, with early adoption permitted. The Company's project plan involves identifying and implementing appropriate changes to its business processes, systems and controls as well as compiling and evaluating lease arrangements to support lease accounting and disclosures under Topic 842. As of June 30, 2019, and subject to the company’s ongoing evaluation of new lease contracts, the Company anticipates the adoption of this new standard will result in recognizing approximately $70 million to $85 million of right of use assets and lease obligation liabilities on the consolidated balance sheet. The standard will not have a significant impact on the Company's consolidated statements of income or the consolidated statements of cash flows. There will also be no impact on existing debt covenants. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This guidance was effective beginning fiscal year 2019. The Company has adopted this ASU effective July 2, 2018 using the modified retrospective approach and this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. Additional disclosures related to adoption of this ASU have been included at Note 4. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss): The following tables set forth the changes in accumulated other comprehensive income (loss) (in thousands): Fiscal Year Ended June 30, 2019 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (28,928 ) $ 6,486 $ (229,830 ) $ (252,272 ) Other Comprehensive Loss Before Reclassification (2,839 ) (14,842 ) (45,678 ) (63,359 ) Income Tax Benefit — 3,562 10,963 14,525 Net Other Comprehensive Loss Before Reclassifications (2,839 ) (11,280 ) (34,715 ) (48,834 ) Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — (1,713 ) — (1,713 ) Realized (Gains) Losses - Commodity Contracts (1) — (149 ) — (149 ) Realized (Gains) Losses - Interest Rate Swaps (1) — (1,127 ) — (1,127 ) Amortization of Prior Service Costs (Credits) (2) — — (550 ) (550 ) Amortization of Actuarial Losses (2) — — 14,797 14,797 Total Reclassifications Before Tax — (2,989 ) 14,247 11,258 Income Tax Expense (Benefit) — 717 (3,419 ) (2,702 ) Net Reclassifications — (2,272 ) 10,828 8,556 Other Comprehensive Loss (2,839 ) (13,552 ) (23,887 ) (40,278 ) Ending Balance $ (31,767 ) $ (7,066 ) $ (253,717 ) $ (292,550 ) (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. Fiscal Year Ended July 1, 2018 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (24,744 ) $ (76 ) $ (275,206 ) $ (300,026 ) Other Comprehensive Income (Loss) Before Reclassification (4,184 ) 4,303 43,802 43,921 Income Tax Benefit (Expense) — (936 ) (10,556 ) (11,492 ) Net Other Comprehensive Income (Loss) Before Reclassifications (4,184 ) 3,367 33,246 32,429 Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — 4,795 — 4,795 Realized (Gains) Losses - Commodity Contracts (1) — 96 — 96 Realized (Gains) Losses - Interest Rate Swaps (1) — (251 ) — (251 ) Amortization of Prior Service Costs (Credits) (2) — — (1,255 ) (1,255 ) Amortization of Actuarial Losses (2) — — 18,785 18,785 Total Reclassifications Before Tax — 4,640 17,530 22,170 Income Tax Expense (Benefit) — (1,445 ) (5,400 ) (6,845 ) Net Reclassifications — 3,195 12,130 15,325 Other Comprehensive Income (Loss) (4,184 ) 6,562 45,376 47,754 Ending Balance $ (28,928 ) $ 6,486 $ (229,830 ) $ (252,272 ) (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. Fiscal Year Ended July 2, 2017 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (23,863 ) $ (1,552 ) $ (313,035 ) $ (338,450 ) Other Comprehensive Income (Loss) Before Reclassification (881 ) 1,003 43,947 44,069 Income Tax Benefit (Expense) — (376 ) (16,480 ) (16,856 ) Net Other Comprehensive Income (Loss) Before Reclassifications (881 ) 627 27,467 27,213 Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — 357 — 357 Realized (Gains) Losses - Commodity Contracts (1) — 258 — 258 Realized (Gains) Losses - Interest Rate Swaps (1) — 743 — 743 Amortization of Prior Service Costs (Credits) (2) — — (2,474 ) (2,474 ) Amortization of Actuarial Losses (2) — — 19,053 19,053 Plan Settlement (2) — — — — Total Reclassifications Before Tax — 1,358 16,579 17,937 Income Tax Expense (Benefit) — (509 ) (6,217 ) (6,726 ) Net Reclassifications — 849 10,362 11,211 Other Comprehensive Income (Loss) (881 ) 1,476 37,829 38,424 Ending Balance $ (24,744 ) $ (76 ) $ (275,206 ) $ (300,026 ) (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. |
Acquisitions Acquisitions
Acquisitions Acquisitions | 12 Months Ended |
Jun. 30, 2019 | |
Acquisitions [Abstract] | |
Acquisition Footnote [Text Block] | ( 17 ) Acquisitions: On July 31, 2018 the Company completed a cash acquisition of certain assets of Hurricane Inc., a designer and manufacturer of commercial stand-on leaf and debris blowers. The purchase price is comprised of $8.7 million of cash consideration and $2.0 million of contingent cash consideration. The Company has accounted for the acquisition in accordance with ASC 805 and it has been included in the Products segment. At June 30, 2019, the Company's final purchase accounting resulted in the recognition of $6.7 million of goodwill and $4.4 million of intangible assets. |
Fair Value
Fair Value | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value: Assets and Liabilities Measured at Fair Value: The following guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Significant inputs to the valuation model are unobservable. The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and July 1, 2018 (in thousands): Fair Value Measurement Using June 30, 2019 Level 1 Level 2 Level 3 Assets: Derivatives $ 1,564 $ — $ 1,564 $ — Liabilities: Derivatives $ 12,014 $ — $ 12,014 $ — Fair Value Measurement Using July 1, 2018 Level 1 Level 2 Level 3 Assets: Derivatives $ 7,938 $ — $ 7,938 $ — Liabilities: Derivatives $ 231 $ — $ 231 $ — The fair value for Level 2 measurements are based upon the respective quoted market prices for comparable instruments in active markets, which include current market pricing for forward purchases of commodities, foreign currency forwards, and current interest rates. The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States. Fair Value of Financial Instruments: The Company believes that the carrying values of cash and cash equivalents, trade receivables and accounts payable are reasonable estimates of their fair values at June 30, 2019 and July 1, 2018 due to the short-term nature of these instruments. The estimated fair value of the 6.875% Senior Notes due December 2020 is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the valuation hierarchy. The estimated fair market values of the Company’s indebtedness is (in thousands): 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value 6.875% Senior Notes $ 195,464 $ 203,593 $ 200,888 $ 214,000 Borrowings on Revolver $ 160,540 $ 160,540 $ 48,036 $ 48,036 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: The changes in the carrying amount of goodwill by reportable segment for the fiscal years ended June 30, 2019 and July 1, 2018 are as follows (in thousands): Engines Products Total Goodwill Balance at July 2, 2017 $ 138,074 $ 23,575 $ 161,649 Acquisitions — 2,573 2,573 Effect of Translation (682 ) (340 ) (1,022 ) Goodwill Balance at July 1, 2018 $ 137,392 $ 25,808 $ 163,200 Acquisitions — 6,786 6,786 Effect of Translation (297 ) (7 ) (304 ) Goodwill Balance at June 30, 2019 $ 137,095 $ 32,587 $ 169,682 At June 30, 2019 , July 1, 2018 and July 2, 2017 , accumulated goodwill impairment losses, as recorded in the Products segment, were $131.4 million respectively. The Company evaluates goodwill for impairment at least annually as of the fiscal year-end and more frequently if events or circumstances indicate that the assets may be impaired. The Company will test goodwill using a two-step process. The first step of the goodwill impairment test is to identify a potential impairment by comparing the carrying values of each of the Company's reporting units to their estimated fair values as of the test dates. The estimates of fair value of the reporting units are computed using either an income approach, a market approach, or a combination of both. The income approach utilizes a multi-year forecast of estimated cash flows and a terminal value at the end of the cash flow period. The forecast period assumptions consist of internal projections that are based on the Company's budget and long-range strategic plan. The discount rate used at the test date is the weighted-average cost of capital which reflects the overall level of inherent risk of the reporting unit and the rate of return an outside investor would expect to earn. Valuations using the market approach are derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. Some of the significant assumptions inherent in estimating the fair values include the estimated future annual net cash flows for each reporting unit (including net sales, operating income margin, and working capital) and a discount rate that appropriately reflects the risks inherent in each future cash flow stream. The Company selected assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates, management’s plans, and guideline companies. The assumptions included in the impairment test require judgment, and changes to these inputs could impact the results of the calculation. If the fair value of a reporting unit exceeds its book value, goodwill of the reporting unit is not deemed impaired and the second step of the impairment test is not performed. If the book value of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by allocating the estimated fair value of the reporting unit to the estimated fair value of its existing tangible assets and liabilities as well as existing identified intangible assets and previously unrecognized intangible assets in a manner similar to a purchase price allocation. The unallocated portion of the estimated fair value of the reporting unit is the implied fair value of goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The Jobsite reporting unit fair value exceeded the carrying value by less than 10% as of the latest 2019 impairment testing date. The discount rate the Company used to determine the fair value was 14.3%. The Turf & Consumer reporting unit fair value exceeded the carrying value by more than 10% but less than 20% as of the latest 2019 impairment testing date. The discount rate the Company used to determine the fair value was 14.2%.The Engines reporting unit fair value exceeded the carrying value by more than 20% as of the latest 2019 impairment testing date. The discount rate the Company used to determine the fair value was 14.9%. The Company’s other intangible assets as of June 30, 2019 and July 1, 2018 are as follows (in thousands) in the table below. After an intangible asset has been fully amortized, it is removed from the table in the subsequent year. 2019 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized Intangible Assets: Patents $ 9,600 $ (7,410 ) $ 2,190 $ 7,300 $ (6,813 ) $ 487 Customer Relationships 61,381 (21,634 ) 39,747 60,182 (18,995 ) 41,187 Other Intangible Assets 854 (513 ) 341 839 (774 ) 65 Effect of Translation (6,862 ) 790 (6,072 ) (6,887 ) 1,065 (5,822 ) Total Amortized Intangible Assets 64,973 (28,767 ) 36,206 61,434 (25,517 ) 35,917 Unamortized Intangible Assets: Tradenames 64,667 — 64,667 63,967 — 63,967 Effect of Translation (4,135 ) — (4,135 ) (4,020 ) — (4,020 ) Total Unamortized Intangible Assets 60,532 — 60,532 59,947 — 59,947 Total Intangible Assets $ 125,505 $ (28,767 ) $ 96,738 $ 121,381 $ (25,517 ) $ 95,864 The Company also performs an impairment test of its indefinite-lived intangible assets as of the fiscal year-end and more frequently if events or circumstances indicate that the assets may be impaired. For purposes of the indefinite-lived intangible asset impairment analysis, the Company performs its assessment of fair value based on an income approach using the relief-from-royalty method. The Company determines the fair value of each tradename by applying a royalty rate to a projection of net sales discounted using a risk adjusted cost of capital. Sales growth rates are determined after considering current and future economic conditions, recent sales trends, discussions with customers, planned timing of new product launches and many other variables. Each royalty rate is based on profitability of the business to which it relates and observed market royalty rates. Amortization expense of other intangible assets amounted to approximately $3.3 million in 2019 , $3.4 million in 2018 , and $3.5 million in 2017 . The estimated amortization expense of other intangible assets for the next five years is (in thousands): 2020 $ 2,790 2021 2,790 2022 2,790 2023 2,790 2024 2,790 $ 13,950 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes and Tax Reform: Components of income (loss) before income taxes consists of the following (in thousands): 2019 2018 2017 U.S. $ (73,878 ) $ (5,350 ) $ 66,555 Foreign 5,780 16,451 13,106 Total $ (68,098 ) $ 11,101 $ 79,661 The provision (credit) for income taxes consists of the following (in thousands): 2019 2018 2017 Current Federal $ (1,488 ) $ (12,072 ) $ 7,333 State 1,473 (4,413 ) 933 Foreign 4,469 3,556 4,429 4,454 (12,929 ) 12,695 Deferred Federal $ (16,855 ) $ 31,235 $ 8,156 State (2,653 ) 4,462 583 Foreign 1,039 (347 ) 1,577 (18,469 ) 35,350 10,316 Total $ (14,015 ) $ 22,421 $ 23,011 A reconciliation of the U.S. statutory tax rates to the effective tax rates on income follows: 2019 2018 2017 U.S. Statutory Rate 21.0 % 28.0 % 35.0 % State Taxes, Net of Federal Tax Benefit 4.0 % 3.7 % 1.5 % Impact of Foreign Operations and Tax Rates 0.2 % (2.5 )% (2.1 )% Valuation Allowance (8.6 )% 6.7 % 5.3 % Changes to Unrecognized Tax Benefits (2.8 )% 1.3 % (4.5 )% U.S. Manufacturers Deduction — % — % (2.4 )% Research & Development Credit (1) 9.9 % (25.2 )% (3.1 )% Return to Provision Adjustment (0.3 )% 15.6 % (0.4 )% U.S. Tax Reform (2) (1.4 )% 189.9 % — % Impact of Joint Venture Business Optimization (0.6 )% 4.5 % — % Worthless Stock Loss — % (10.8 )% — % Warehouse Charitable Contribution — % (9.5 )% — % Other, Net (0.8 )% 0.2 % (0.4 )% Effective Tax Rate 20.6 % 201.9 % 28.9 % (1) "Research & Development Credit” in fiscal 2019 includes incremental credit of $4.0 million for qualified costs associated with the Company's business optimization projects. (2) This amount consists of impacts from the Tax Act including an expense in 2018 resulting from the re-measurement of deferred tax assets and liabilities for the US corporate tax rate reduction of approximately $13.8 million and an expense related to the inclusion of foreign earnings of approximately $7.3 million in 2018 and $1.0 million in 2019. The components of deferred income taxes were as follows (in thousands): Long-Term Asset (Liability): 2019 2018 Difference Between Book and Tax Related to: Pension Cost $ 22,425 $ 14,570 Accumulated Depreciation (57,073 ) (53,103 ) Intangibles (34,883 ) (34,166 ) Accrued Employee Benefits 34,982 34,108 Postretirement Health Care Obligation 6,300 7,275 Inventory 11,396 10,710 Warranty 11,351 10,842 Payroll & Workers Compensation Accruals 4,828 6,474 Valuation Allowance (35,271 ) (28,537 ) Net Operating Loss/Credit Carryforwards 70,953 39,849 Other Accrued Liabilities 7,414 6,205 Miscellaneous 548 (2,359 ) Deferred Income Tax Asset (Liability) $ 42,970 $ 11,868 Total deferred tax assets were $170.2 million and $130.1 million as of June 30, 2019 and July 1, 2018 , respectively. Total deferred tax liabilities were $127.2 million and $118.0 million as of June 30, 2019 and July 1, 2018 , respectively. During fiscal 2019 , the total valuation allowance increased by $6.7 million . Deferred tax assets were generated during the current year as a result of foreign income tax loss carryforwards in the amount of $4.6 million . At June 30, 2019 , there are $11.4 million of foreign income tax loss carryforwards, consisting of $9.1 million that have no expiration date, and $2.3 million that will expire within the next 5 to 10 years. A deferred tax asset of $59.5 million exists at June 30, 2019 related to federal and state income tax losses and federal and state tax credit carryforwards, consisting of $19.2 million that have no expiration date, and $40.3 million that will expire between 2019 and 2039 . Realization of the deferred tax assets are contingent upon generating sufficient taxable income prior to expiration of these carryforwards. At June 30, 2019 , a valuation allowance of $12.4 million is recorded for the foreign deferred tax assets which the Company believes are unlikely to be realized in the future. In addition, a valuation allowance of $22.8 million is recorded related to state tax credits that are unlikely to be realized. The change to the gross unrecognized tax benefits of the Company during the fiscal years ended June 30, 2019 , July 1, 2018 , and July 3, 2016 is reconciled as follows: Unrecognized Tax Benefits (in thousands): 2019 2018 2017 Beginning Balance $ 5,899 $ 5,986 $ 10,922 Changes based on tax positions related to prior year — — (861 ) Additions based on tax positions related to current year 2,382 981 461 Settlements with taxing authorities — — (4,437 ) Lapse of statute of limitations (1,306 ) (1,068 ) (99 ) Ending Balance $ 6,975 $ 5,899 $ 5,986 As of June 30, 2019 , gross unrecognized tax benefits that, if recognized, would impact the effective tax rate were $6.7 million . There is a reasonable possibility that approximately $0.4 million of the liability for uncertain tax positions may be settled within the next twelve months due to the resolution of audits or expiration of statutes of limitations. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The total expense (income) recognized for fiscal years 2019 , 2018 and 2017 was $0.1 million , $(0.2) million , and $(0.2) million , respectively. As of June 30, 2019 and July 1, 2018 , the Company had $0.9 million and $0.8 million , respectively, accrued for the payment of interest and penalties. At June 30, 2019 and July 1, 2018 , the liability for uncertain tax positions, inclusive of interest and penalties, was $7.8 million and $6.7 million , respectively, which is recorded as an other long-term liability within the Consolidated Balance Sheets. |
Segment and Geographic Informat
Segment and Geographic Information and Significant Customers | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information and Significant Customers | Segment and Geographic Information and Significant Customers: The Company aggregates operating segments that have similar economic characteristics, products, production processes, types or classes of customers and distribution methods into reportable segments. The Company concluded that it operates two reportable segments: Engines and Products. The Company uses “segment income (loss)” as the primary measure to evaluate operating performance and allocate capital resources for the Engines and Products segments. The Company defines segment income (loss) as income from operations plus equity in earnings of unconsolidated affiliates. Summarized segment data is as follows (in thousands): 2019 2018 2017 NET SALES: Engines $ 988,707 $ 1,066,318 $ 1,098,809 Products 932,137 904,007 778,378 Eliminations (84,239 ) (89,031 ) (91,084 ) $ 1,836,605 $ 1,881,294 $ 1,786,103 GROSS PROFIT: Engines $ 193,069 $ 252,645 $ 262,036 Products 108,984 144,933 121,141 Eliminations (1,002 ) 504 652 $ 301,051 $ 398,082 $ 383,829 SEGMENT INCOME (LOSS) (1) Engines $ (15,519 ) $ 9,593 $ 81,641 Products (22,675 ) 22,012 12,530 Eliminations (1,002 ) 504 652 $ (39,196 ) $ 32,109 $ 94,823 INTEREST EXPENSE (29,242 ) (25,320 ) (20,293 ) OTHER INCOME, Net 340 4,312 5,131 Income (Loss) Before Income Taxes (68,098 ) 11,101 79,661 PROVISION (CREDIT) FOR INCOME TAXES (14,015 ) 22,421 23,011 Net Income (Loss) $ (54,083 ) $ (11,320 ) $ 56,650 ASSETS: Engines $ 952,820 $ 965,677 $ 987,943 Products 646,417 547,540 551,207 Eliminations (47,806 ) (69,251 ) (88,171 ) $ 1,551,431 $ 1,443,966 $ 1,450,979 CAPITAL EXPENDITURES: Engines $ 31,680 $ 79,724 $ 67,218 Products 20,774 23,479 15,923 $ 52,454 $ 103,203 $ 83,141 DEPRECIATION & AMORTIZATION: Engines $ 48,932 $ 44,361 $ 44,384 Products 15,268 13,897 11,799 $ 64,200 $ 58,258 $ 56,183 Pre-tax business optimization and litigation settlement charges impact on gross profit (in thousands): 2019 2018 2017 Engines $ 2,662 $ 2,854 $ — Products 9,207 3,775 — Total $ 11,869 $ 6,629 $ — Pre-tax business optimization charges, acquisition-related charges, bad debt charges related to major retailer bankruptcy, pension settlement charges, and litigation charges impact on segment income (loss) is as follows (in thousands): 2019 2018 2017 Engines $ 29,149 $ 53,913 $ — Products 22,648 8,113 — Total $ 51,797 $ 62,026 $ — Information regarding the Company’s geographic sales based on product shipment destination (in thousands): 2019 2018 2017 United States $ 1,354,635 $ 1,346,687 $ 1,246,015 All Other Countries 481,970 534,607 540,088 Total $ 1,836,605 $ 1,881,294 $ 1,786,103 Information regarding the Company’s net plant and equipment based on geographic location (in thousands): 2019 2018 2017 United States $ 392,146 $ 405,808 $ 347,664 All Other Countries 18,899 16,272 17,216 Total $ 411,045 $ 422,080 $ 364,880 Sales to the following customers in the Company’s Engines segment amount to greater than or equal to 10% of consolidated net sales (in thousands): 2019 2018 2017 Customer: Net Sales % Net Sales % Net Sales % MTD $ 220,714 12 % $ 192,402 10 % $ 205,339 11 % HOP 139,920 8 % 184,008 10 % 207,882 12 % $ 360,634 20 % $ 376,410 20 % $ 413,221 23 % |
Leases
Leases | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases: The Company leases certain facilities, vehicles, and equipment under operating leases. Operating leases are not capitalized and lease payments are expensed over the life of the lease. Terms of the leases, including purchase options, renewals, and maintenance costs, vary by lease. Rental expense for fiscal 2019 , 2018 and 2017 was $20.1 million , $20.0 million and $19.3 million , respectively. Future minimum lease commitments for all non-cancelable operating leases as of June 30, 2019 are as follows (in thousands): Fiscal Year Commitments 2020 $ 20,453 2021 18,179 2022 14,784 2023 10,345 2024 9,515 Thereafter 73,639 Total future minimum lease commitments $ 146,915 |
Indebtedness
Indebtedness | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness: The following is a summary of the Company’s indebtedness (in thousands): 2019 2018 Multicurrency Credit Agreement $ 160,540 $ 48,025 Total Short-Term Debt $ 160,540 $ 48,025 Note Payable (NMTC transaction) 7,685 7,685 Unamortized Debt Issuance Costs associated with Note Payable 820 1,009 8,505 8,694 6.875% Senior Notes $ 195,464 $ 200,888 Unamortized Debt Issuance Costs associated with 6.875% Senior Notes 495 934 Total Long-Term Debt $ 194,969 $ 199,954 6.875% Senior Notes On December 20, 2010 , the Company issued $225 million of 6.875% Senior Notes ("Senior Notes") due December 15, 2020 . During fiscal 2019 and 2018, the Company repurchased $5 million and $22 million , respectively, of the Senior Notes. There were no repurchases in fiscal 2017. Multicurrency Credit Agreement On March 25, 2016 , the Company entered into a $500 million amended and restated multicurrency credit agreement (the “Revolver”) that matures on March 25, 2021 . The Revolver amended and restated the Company's $500 million multicurrency credit agreement dated as of October 13, 2011 (as previously amended), which would have matured on October 21, 2018 . The initial maximum availability under the Revolver is $500 million . Availability under the Revolver is reduced by outstanding letters of credit. The Company may from time to time increase the maximum availability under the revolving credit facility by up to $250 million if certain conditions are satisfied. In connection with the amendment to the Revolver in fiscal 2016, the Company incurred approximately $0.9 million in new debt issuance costs, which are being amortized over the life of the Revolver using the straight-line method. The Company classifies debt issuance costs related to the Revolver as an asset, regardless of whether it has any outstanding borrowings on the line of credit arrangements. There were $161 million of borrowings under the Revolver as of June 30, 2019 . There were $48 million borrowings under the Revolver as of July 1, 2018 . Borrowings under the Revolver by the Company bear interest at a rate per annum equal to, at its option, either: (1) a 1, 2, 3 or 6 month LIBOR rate plus a margin varying from 1.25% to 2.25% , depending on the Company’s average net leverage ratio; or (2) the higher of (a) the federal funds rate plus 0.50% ; (b) the bank's prime rate; or (c) the adjusted LIBOR rate for a one-month interest period plus 1.00% plus a margin varying from 0.25% to 1.25% . In addition, the Company is subject to a 0.18% to 0.35% commitment fee and a 1.25% to 2.25% letter of credit fee, depending on the Company’s average net leverage ratio. The Revolver contains covenants that the Company considers usual and customary for an agreement of this type, including a maximum average leverage ratio and minimum interest coverage ratio. The Senior Notes and the Revolver contain restrictive covenants. These covenants include restrictions on the ability of the Company and/or certain subsidiaries to pay dividends, repurchase equity interests of the Company and certain subsidiaries, incur indebtedness, create liens, consolidate and merge and dispose of assets, and enter into transactions with affiliates. The Revolver contains financial covenants that require the Company to maintain a minimum interest coverage ratio and impose on the Company a maximum average leverage ratio. On August 13, 2019, the Company entered into a consent memorandum pursuant to our revolving multicurrency credit agreement. Pursuant to the consent memorandum, the Average Leverage Ratio covenant will not be tested for the computation period ended June 30, 2019 (the “Specified Computation Period”) and no failure (or anticipated failure) by the Company to comply with associated restrictions for the specified computation period will constitute (or be deemed to have constituted) a default or an event of default under the credit agreement. Additionally, no default shall be deemed to exist under the Credit Agreement for any anticipated failure by the Company to comply with such restrictions for the computation period ending on or about September 30, 2019. The Company was in compliance with all other financial covenants of the credit agreement as of June 30, 2019 and the failure or anticipated failure to comply with the Average Leverage Ratio under the Credit Agreement is not considered to be a cross default for purposes of the Company’s Senior Notes. The Company is in the process of refinancing the revolving credit agreement. The new revolving credit facility, which would be secured by certain of the Company's working capital and other assets, is planned to have a larger borrowing capacity that would allow the Company to retire the outstanding Senior Notes. New Market Tax Credit On August 16, 2017, the Company entered into a financing transaction with SunTrust Community Capital, LLC (“SunTrust”) related to the Company's business optimization program under the New Markets Tax Credit (“NMTC”) program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified low-income communities. The Act permits taxpayers to claim credits against their Federal income taxes for qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments (“QLICIs”). In connection with the financing, one of the Company’s subsidiaries loaned approximately $16 million to an investment fund, and simultaneously, SunTrust contributed approximately $8 million to the investment fund. SunTrust is entitled to substantially all of the benefits derived from the NMTCs. SunTrust’s contribution, net of syndication fees, is included in Other Long-Term Liabilities on the consolidated balance sheets. The Company incurred approximately $1.2 million in new debt issuance costs, which are being amortized over the life of the note payable. The investment fund contributed the proceeds to certain CDEs, which, in turn, loaned the funds to the Company, as partial financing for the business optimization program. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by SunTrust, net of syndication fees) are restricted for use on the project. Restricted cash of $0.8 million held by the Company at June 30, 2019 is included in Prepaid Expenses and Other Current Assets in the accompanying consolidated balance sheet. This financing also includes a put/call provision that can be exercised beginning in August 2024 whereby the Company may be obligated or entitled to repurchase SunTrust’s interest in the investment fund for a de minimis amount. The Company has determined that the financing arrangement is a variable interest entity (“VIE”) and has consolidated the VIE in accordance with the accounting standard for consolidation. |
Other Income, Net Other Income,
Other Income, Net Other Income, Net | 12 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income [Text Block] | Other Income, Net: The components of Other Income, Net are as follows (in thousands): 2019 2018 2017 Interest Income $ 520 $ 1,526 $ 1,203 Other Items (180 ) 2,786 3,928 Total $ 340 $ 4,312 $ 5,131 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: The Company is subject to various unresolved legal actions that arise in the normal course of its business. These actions typically relate to product liability (including asbestos-related liability), patent and trademark matters, and disputes with customers, suppliers, distributors and dealers, competitors and employees. On May 12, 2010, Exmark Manufacturing Company, Inc. filed suit against Briggs & Stratton Power Products Group, LLC (“BSPPG”), a wholly owned subsidiary of the Company that was subsequently merged with and into the Company on January 1, 2017 (Case No. 8:10CV187, U.S. District Court for the District of Nebraska), alleging that certain Ferris® and Snapper Pro® mower decks infringed an Exmark mower deck patent. Exmark sought damages relating to sales since May 2004, attorneys’ fees, and enhanced damages. As a result of a reexamination proceeding in 2012, the United States Patent and Trademark Office (“USPTO”) initially rejected the asserted Exmark claims as invalid. However, in 2014, that decision was reversed by the USPTO on appeal by Exmark. Following discovery, each of BSPPG and Exmark filed several motions for summary judgment in the Nebraska district court, which were decided on July 28, 2015. The court concluded that older mower deck designs infringed Exmark’s patent, leaving for trial the issues of whether current designs infringed, the amount of damages, and whether any infringement was willful. The trial began on September 8, 2015, and on September 18, 2015, the jury returned its verdict, finding that BSPPG’s current mower deck designs do not infringe the Exmark patent. As to the older designs, the jury awarded Exmark $24.3 million in damages and found that the infringement was willful, allowing the judge to enhance the jury’s damages award post-trial by up to three times. Also on September 18, 2015, the U.S. Court of Appeals for the Federal Circuit issued its decision in an unrelated case, SCA Hygiene Products Aktiebolag SCA Personal Care, Inc. v. First Quality Baby Products, LLC, et al. (Case No. 2013-1564) (“SCA”), confirming the availability of laches as a defense to patent infringement claims. Laches is an equitable doctrine that may bar a patent owner from obtaining damages prior to commencing suit, in circumstances in which the owner knows or should have known its patent was being infringed for more than six years. Although the court in the Exmark case ruled before trial that BSPPG could not rely on the defense of laches, as a result of the subsequent SCA decision, the court held a bench trial on that defense on October 21 and 22, 2015. On May 2, 2016, the United States Supreme Court agreed to review the SCA decision. The parties submitted post-trial motions and briefing related to: damages; willfulness; laches; attorney fees; enhanced damages; and prejudgment/post-judgment interest and costs. All post-trial motions and briefing were completed on December 18, 2015. On May 11, 2016, the court ruled on those post-trial motions and entered judgment against BSPPG and in favor of Exmark in the amount of $24.3 million in compensatory damages, an additional $24.3 million in enhanced damages, and $1.5 million in pre-judgment interest along with post-judgment interest and costs to be determined. The Company strongly disagreed with the jury verdict, certain rulings made before and during trial, and the May 11, 2016 post-trial rulings. BSPPG appealed to the U.S. Court of Appeals for the Federal Circuit on several bases, including the issues of obviousness and invalidity of Exmark’s patent, the damages calculation, willfulness and laches. Following briefing of the appeal and prior to oral argument, the United States Supreme Court overturned the SCA decision, ruling that laches is not available in a patent infringement case for damages. That ruling eliminated laches as one basis for BSPPG’s appeal of the Exmark case. The appellate court held a hearing on the remainder of BSPPG’s appeal on April 5, 2017 and issued its decision on January 12, 2018. The appellate court found that the district court erred in granting summary judgment concerning the patent’s validity and remanded that issue to the district court for reconsideration. The appellate court also vacated the jury’s damages award and the district court’s award of enhanced damages, remanding the case to the district court for a new trial on damages and reconsideration on willfulness. The appellate court affirmed the district court rulings in all other respects. In subsequent rulings, the district court reaffirmed the validity of Exmark’s patent and its original ruling on willfulness. A new trial on the issue of damages commenced on December 10, 2018, resulting in a damages assessment by the jury of $14.4 million. On December 20, 2018, the district court entered judgment against the Company and in favor of Exmark in the amount of $14.4 million in compensatory damages, an additional $14.4 million in enhanced damages, as well as pre-judgment interest, post-judgment interest and costs to be determined. On April 15, 2019, the district court entered an order denying the Company’s post-trial motions related to modification of the jury’s damages award, as well as seeking a new trial in light of certain evidentiary rulings. The district court awarded $6.0 million in pre-judgment interest, as well as post-judgment interest after December 19, 2018 and costs to be determined. The Company strongly disagrees with the verdict and certain rulings made before, during and after the new trial and intends to vigorously pursue its rights on appeal. The Company filed its notice of appeal on May 14, 2019, and has appealed errors made by the district court in construing certain claims of Exmark’s patent, granting summary judgment motions filed by Exmark, and altering the prejudgment interest rate following the second trial. The parties are in the process of briefing the issues raised on appeal. In assessing whether the Company should accrue a liability in its financial statements as a result of this lawsuit, the Company considered various factors, including the legal and factual circumstances of the case, the trial records and post-trial rulings of the district court, the decision of the appellate court, the current status of the proceedings, applicable law and the views of legal counsel. As a result of this review, the Company has concluded that a loss from this case is not probable and reasonably estimable at this time and, therefore, a liability has not been recorded with respect to this case as of June 30, 2019. Although it is not possible to predict with certainty the outcome of this and other unresolved legal actions or the range of possible loss, the Company believes the unresolved legal actions will not have a material adverse effect on its results of operations, financial position or cash flows. |
Stock Incentives
Stock Incentives | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Stock Incentives | Stock Incentives: Effective October 20, 2004, a total of 8,000,000 shares of common stock (as adjusted for the fiscal 2005 2 -for-1 stock split) was reserved for future issuance pursuant to the Company's Incentive Compensation Plan, and as a result of an amendment approved by shareholders on October 21, 2009 an additional 2,481,494 shares were reserved. On October 15, 2014, the Company's shareholders approved the 2014 Omnibus Incentive Plan, which constituted a complete amendment and restatement of the Company's Incentive Compensation Plan and under which 3,760,000 shares of common stock were reserved for future issuance (plus any shares remaining available for issuance under the Incentive Compensation Plan as of that date). On October 25, 2017 the Company's shareholders approved the 2017 Omnibus Incentive Plan which constituted a complete amendment and restatement of the Company's 2014 Omnibus Incentive Plan and under which 4,700,000 shares of common stock were reserved for future issuance (plus 494,315 shares remaining available for future issuance under the 2014 Omnibus Incentive Plan as of August 22, 2017, along with any other shares under the 2014 Omnibus Incentive Plan that become available for future issuance). Similar to the Incentive Compensation Plan and the 2014 Omnibus Incentive Plan, in accordance with the 2017 Omnibus Incentive Plan, the Company can issue to eligible participants stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other stock-based and cash bonus awards subject to certain annual limitations. The plan also allows participants to defer the payment of awards and the Company to issue directors’ fees in stock. Stock-based compensation vests in accordance with the applicable plan and award agreements but can be accelerated under certain circumstances by the Compensation Committee in the case of death, disability, retirement or a change in control. Stock-based compensation expense is calculated by estimating the fair value of incentive stock awards granted and amortizing the estimated value over the awards’ vesting periods. During fiscal 2019 , 2018 and 2017 , the Company recognized stock-based compensation expense of approximately $7.2 million , $6.7 million and $4.9 million , respectively. The fair value of each option is estimated using the Black-Scholes option pricing model, and the assumptions are based on historical data and industry valuation practices and methodology. The exercise price of each stock option is equal to the market value of the stock on the grant date. The assumptions used to determine fair value are as follows: Options Granted During 2019 2018 2017 Grant Date Fair Value $ 5.46 $ 4.64 $ 3.84 (Since options are only granted once per year, the grant date fair value equals the weighted average grant date fair value.) Assumptions: Risk-free Interest Rate 2.7 % 1.8 % 1.2 % Expected Volatility 32.9 % 30.7 % 29.3 % Expected Dividend Yield 2.7 % 2.7 % 2.9 % Expected Term (in Years) 5.5 5.5 5.5 Information on the options outstanding is as follows: Options Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance, July 3, 2016 1,844,543 $ 19.48 Granted During the Year 496,880 19.15 Exercised During the Year (414,176 ) 18.76 Balance, July 2, 2017 1,927,247 $ 19.55 Granted During the Year 416,210 20.47 Exercised During the Year (184,530 ) 20.44 Balance, July 1, 2018 2,158,927 $ 19.64 Granted During the Year 367,870 20.96 Exercised During the Year (87,398 ) 20.82 Forfeited During the Year (58,390 ) 18.93 Expired During the Year (112,929 ) 20.82 Balance, June 30, 2019 2,268,080 $ 19.78 7.03 $ — Exercisable, June 30, 2019 1,005,090 $ 19.36 5.73 $ — The total intrinsic value of options exercised during fiscal year 2019 was $0.1 million . The exercise of options resulted in cash receipts of $1.8 million in fiscal 2019 . The total intrinsic value of options exercised during fiscal 2018 was $0.5 million . The exercise of options resulted in cash receipts of $3.8 million in fiscal 2018 . The total intrinsic value of options exercised during fiscal 2017 was $1.5 million . The exercise of options resulted in cash receipts of $7.8 million in fiscal 2017 . Options Outstanding (as of June 30, 2019) Fiscal Year Grant Date Date Exercisable Expiration Date Exercise Price Options Outstanding 2015 10/21/2014 10/21/2017 10/21/2024 $ 18.83 543,520 2016 8/18/2015 8/18/2018 8/18/2025 $ 19.90 501,990 2017 8/22/2016 8/22/2019 8/22/2026 $ 19.15 496,880 2018 8/21/2017 8/21/2020 8/21/2027 $ 20.47 416,210 2019 8/20/2018 8/20/2021 2/20/2028 $ 20.96 367,870 Below is a summary of the status of the Company’s nonvested shares as of June 30, 2019 , and changes during the year then ended: Deferred Stock / RSU Restricted Stock Stock Options Performance Shares Shares Wtd. Avg. Grant Date Fair Value Shares Wtd. Avg. Grant Date Fair Value Shares Wtd. Avg. Grant Date Fair Value Shares Wtd. Avg. Grant Date Fair Value Nonvested shares/units, July 1, 2018 78,821 $ 19.52 695,255 $ 19.87 1,415,080 $ 4.03 106,440 $ 19.90 Granted 10,902 20.03 138,550 20.73 367,870 5.46 — — Cancelled — — (26,940 ) 20.77 (17,970 ) 3.84 — — Vested (36,442 ) 19.13 (265,255 ) 19.54 (501,990 ) 3.72 (106,440 ) 19.90 Nonvested shares/units, June 30, 2019 53,281 $ 19.89 541,610 $ 20.20 1,262,990 $ 4.58 — $ — As of June 30, 2019 , there was $5.1 million of total unrecognized compensation cost related to nonvested stock-based compensation. That cost is expected to be recognized over a weighted average period of 1.4 years. The total fair value of shares vested during fiscal 2019 and 2018 was $9.9 million and $7.7 million , respectively. During fiscal years 2019 , 2018 and 2017 , the Company issued 138,550 , 148,930 and 160,130 shares of restricted stock, respectively. For restricted stock issued prior to October 15, 2014, the restricted stock vests on the fifth anniversary date of the grant provided the recipient is still employed by the Company. For restricted stock issued after October 15, 2014, the restricted stock vests on the third anniversary date of the grant provided the recipient is still employed by the Company. The aggregate market value on the date of issue was approximately $2.9 million , $3.1 million and $3.1 million in fiscal 2019 , 2018 and 2017 , respectively, and has been recorded within the Shareholders’ Investment section of the Consolidated Balance Sheets, and is being amortized over the five-year vesting period (issuances prior to October 15, 2014) or the three-year vesting period (issuances after October 15, 2014). The Company issued 55,877 , 46,120 and 45,307 deferred shares to its directors in lieu of directors' fees in fiscal 2019 , 2018 and 2017 , respectively, under this provision of the plans. Prior to January 1, 2017, the Company accounted for certain deferred shares issued to directors as liability classified awards, rather than equity classified awards. At January 1, 2017, the liability balance was $4.8 million . During the third quarter of fiscal 2017, the Company determined that equity classification is appropriate and recorded correcting entries to adjust the deferred shares balance and reclassify it from Accrued Liabilities to Additional Paid-In Capital. The correcting entries did not have a material impact on the Consolidated Financial Statements. The Company issued 10,902 , 13,476 and 15,131 shares of deferred shares / RSU's to its officers and key employees in fiscal 2019 , 2018 and 2017 , respectively. The aggregate market value on the date of grant was approximately $0.2 million , $0.3 million and $0.3 million , respectively. For deferred stock issued prior to October 15, 2014, the deferred stock vests on the fifth anniversary date of the grant provided the recipient is still employed by the Company. For restricted stock units (RSU) issued after October 15, 2014, the restricted stock units vest on the third anniversary date of the grant provided the recipient is still employed by the Company. The Company granted no performance share units in 2019 , 2018 and 2017 . The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense: 2019 2018 2017 Stock Options: Pretax compensation expense $ 2,275 $ 2,060 $ 1,862 Tax benefit (553 ) (576 ) (698 ) Stock option expense, net of tax $ 1,722 $ 1,484 $ 1,164 Restricted Stock: Pretax compensation expense $ 3,697 $ 3,302 $ 3,291 Tax benefit (848 ) (924 ) (1,234 ) Restricted stock expense, net of tax $ 2,849 $ 2,378 $ 2,057 Deferred Stock: Pretax compensation expense $ 1,208 $ 1,046 $ 585 Tax benefit (338 ) (292 ) (220 ) Deferred stock expense, net of tax $ 870 $ 754 $ 365 Performance Shares: Pretax compensation expense $ — $ 267 $ (815 ) Tax expense (benefit) — (75 ) 306 Performance Share expense, net of tax $ — $ 192 $ (509 ) Total Stock-Based Compensation: Pretax compensation expense $ 7,180 $ 6,675 $ 4,923 Tax benefit (1,739 ) (1,867 ) (1,846 ) Total stock-based compensation, net of tax $ 5,441 $ 4,808 $ 3,077 |
Derivative Instruments & Hedgin
Derivative Instruments & Hedging Activities | 12 Months Ended |
Jun. 30, 2019 | |
Foreign Currency Derivatives [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments & Hedging Activities: The Company enters into interest rate swaps to manage a portion of its interest rate risk from financing certain dealer and distributor inventories through third party financing sources. The swaps are designated as cash flow hedges and are used to effectively fix the interest payments to a third party financing source, exclusive of lender spreads, ranging from 0.98% to 2.83% for a notional principal amount of $110 million with expiration dates ranging from July 2021 to June 2024. In the second quarter of fiscal 2019, the Company began entering into interest rate swaps to manage a portion of its interest rate risk from anticipated floating rate, LIBOR based indebtedness, exclusive of lender spreads, ranging from 2.47% to 3.13%. The swaps are designated as cash flow hedges, in an aggregate amount of $120 million , with termination dates between June 2023 and December 2029. The Company periodically enters into forward foreign currency contracts to hedge the risk from forecasted third party and intercompany sales or payments denominated in foreign currencies. The Company's primary foreign currency exchange rate exposures are with the Australian Dollar, the Brazilian Real, the Canadian Dollar, the Chinese Renminbi, the Euro, and the Japanese Yen against the U.S. Dollar. These contracts generally do not have a maturity of more than twenty-four months. The Company uses raw materials that are subject to price volatility. The Company hedges a portion of its exposure to the variability of cash flows associated with commodities used in the manufacturing process by entering into forward purchase contracts or commodity swaps. Derivative contracts designated as cash flow hedges are used by the Company to reduce exposure to variability in cash flows associated with future purchases of natural gas. These contracts generally do not have a maturity of more than thirty-six months. The Company has considered the counterparty credit risk related to all its interest rate, foreign currency, and commodity derivative contracts and does not deem any counterparty credit risk material at this time. The notional amount of derivative contracts outstanding at the end of the period is indicative of the level of the Company’s derivative activity during the period. As of June 30, 2019 and July 1, 2018 , the Company had the following outstanding derivative contracts (in thousands): Contract Notional Amount June 30, 2019 July 1, 2018 Interest Rate: LIBOR Interest Rate (U.S. Dollars) Fixed 230,000 110,000 Foreign Currency: Australian Dollar Sell 17,611 35,833 Brazilian Real Sell 13,436 28,822 Canadian Dollar Sell 14,610 14,430 Chinese Renminbi Buy 70,555 62,209 Euro Sell 2,750 32,592 Japanese Yen Buy 0 587,500 Commodity: Natural Gas (Therms) Buy 7,627 10,553 The location and fair value of derivative instruments reported in the Consolidated Balance Sheets are as follows (in thousands): Balance Sheet Location Asset (Liability) Fair Value June 30, 2019 July 1, 2018 Interest rate contracts: Other Current Assets $ — $ 161 Other Long-Term Assets, Net 876 3,844 Other Long-Term Liabilities (11,634 ) — Foreign currency contracts: Other Current Assets 672 3,881 Other Long-Term Assets, Net 16 31 Accrued Liabilities (179 ) (195 ) Other Long-Term Liabilities (11 ) — Commodity contracts: Other Current Assets — 16 Other Long-Term Assets, Net — 5 Accrued Liabilities (176 ) (7 ) Other Long-Term Liabilities (15 ) (29 ) $ (10,451 ) $ 7,707 The effect of derivatives designated as hedging instruments on the Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows (in thousands): Twelve months ended June 30, 2019 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (3,307 ) Net Sales $ 1,127 $ — Foreign currency contracts – sell (1,604 ) Net Sales 1,139 — Foreign currency contracts – buy (1,039 ) Cost of Goods Sold 574 — Commodity contracts (133 ) Cost of Goods Sold 149 — Interest rate contracts $ (7,469 ) Interest Expense $ — $ — $ (13,552 ) $ 2,989 $ — Twelve months ended July 1, 2018 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 1,921 Net Sales $ 251 $ — Foreign currency contracts – sell 2,925 Net Sales (4,116 ) — Foreign currency contracts – buy 1,731 Cost of Goods Sold (679 ) — Commodity contracts (17 ) Cost of Goods Sold (96 ) — $ 6,560 $ (4,640 ) $ — Twelve months ended July 2, 2017 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 1,973 Net Sales $ (743 ) $ — Foreign currency contracts – sell (887 ) Net Sales 1,785 — Foreign currency contracts – buy 297 Cost of Goods Sold (2,142 ) — Commodity contracts 93 Cost of Goods Sold (258 ) — $ 1,476 $ (1,358 ) $ — During the next twelve months, the amount of the June 30, 2019 Accumulated Other Comprehensive Income (Loss) balance that is expected to be reclassified into gains is $0.8 million . The Company enters into forward exchange contracts to hedge purchases and sales that are denominated in foreign currencies. The terms of these currency derivatives generally do not exceed twenty-four months, and the purpose is to protect the Company from the risk that the eventual dollars being transferred will be adversely affected by changes in exchange rates. The Company has forward foreign exchange contracts to sell foreign currency, with the Euro as the most significant. These contracts are used to hedge foreign currency collections on sales of inventory. The Company also has forward contracts to purchase foreign currencies. The Company’s foreign currency forward contracts are carried at fair value based on current exchange rates. The Company had the following forward currency contracts outstanding at the end of fiscal 2019 with the notional value shown in local currency and the contract value, fair value, and (gain) loss at fair value shown in U.S. dollars: Hedge In Thousands Notional Value Contract Value Fair Value (Gain) Loss at Fair Value Conversion Currency Latest Expiration Date Currency Contract Australian Dollar Sell 17,611 12,660 12,329 (331 ) U.S. February 2020 Brazilian Real Sell 13,436 3,455 3,461 30 U.S. December 2019 Canadian Dollar Sell 14,610 9,968 11,171 88 U.S. August 2020 Chinese Renminbi Buy 70,555 10,154 10,267 (113 ) U.S. October 2020 Euro Sell 2,750 3,313 3,161 (151 ) U.S. March 2020 The Company had the following forward currency contracts outstanding at the end of fiscal 2018 with the notional value shown in local currency and the contract value, fair value, and (gain) loss at fair value shown in U.S. dollars: Hedge In Thousands Notional Value Contract Value Fair Value (Gain) Loss at Fair Value Conversion Currency Latest Expiration Date Currency Contract Australian Dollar Sell 35,833 27,880 26,558 (1,322 ) U.S. May 2019 Brazilian Real Buy 28,822 6,682 7,571 (889 ) U.S. March 2019 Canadian Dollar Sell 14,430 11,393 11,020 (373 ) U.S. August 2019 Chinese Renminbi Buy 62,209 9,234 9,324 (90 ) U.S. June 2019 Euro Sell 32,592 39,648 38,603 (1,045 ) U.S. July 2019 Japanese Yen Buy 587,500 5,316 5,324 — U.S. November 2018 The Company continuously evaluates the effectiveness of its hedging program by evaluating its foreign exchange contracts compared to the anticipated underlying transactions. The Company did not have any ineffective currency hedges in fiscal 2019 , 2018 , or 2017 . |
Employee Benefit Costs
Employee Benefit Costs | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Costs | Employee Benefit Costs: Retirement Plan and Other Postretirement Benefits The Company has noncontributory, defined benefit retirement plans and other postretirement benefit plans covering certain employees. In October 2012, the Board of Directors of the Company authorized an amendment to the Company's defined benefit retirement plans for U.S. non-bargaining employees. The amendment freezes accruals for all non-bargaining employees within the pension plan effective December 31, 2013. The Company uses a June 30 measurement date for all of its plans. The following provides a reconciliation of obligations, plan assets and funded status of the plans for the two years indicated (in thousands): Pension Benefits Other Postretirement Benefits Actuarial Assumptions: 2019 2018 2019 2018 Discounted Rate Used to Determine Present Value of Projected Benefit Obligation 3.60 % 4.30 % 3.55 % 4.25 % Weighted Average Expected Long-Term Rate of Return on Plan Assets 6.90 % 7.00 % n/a n/a Change in Benefit Obligations: Projected Benefit Obligation at Beginning of Year $ 959,010 $ 1,116,705 $ 58,801 $ 66,693 Service Cost 4,541 2,402 106 135 Interest Cost 39,720 43,068 2,332 2,372 Plan Settlements (1,720 ) (101,553 ) — — Plan Participant Contributions — — 2,212 2,346 Actuarial (Gain) Loss 59,362 (27,541 ) 1,364 (146 ) Benefits Paid (63,228 ) (74,071 ) (10,815 ) (12,599 ) Projected Benefit Obligation at End of Year $ 997,685 $ 959,010 $ 54,000 $ 58,801 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Year $ 765,644 $ 870,606 $ — $ — Actual Return on Plan Assets 68,745 36,914 — — Plan Participant Contributions — — 2,212 2,346 Employer Contributions 3,734 33,748 8,603 10,253 Benefits Paid (63,228 ) (74,071 ) (10,815 ) (12,599 ) Plan Settlements (1,720 ) (101,553 ) — — Fair Value of Plan Assets at End of Year $ 773,175 $ 765,644 $ — $ — Funded Status: Plan Assets (Less Than) in Excess of Projected Benefit Obligation $ (224,510 ) $ (193,366 ) $ (54,000 ) $ (58,801 ) Amounts Recognized on the Balance Sheets: Accrued Pension Cost $ (221,033 ) $ (189,872 ) $ — $ — Accrued Wages and Salaries (3,477 ) (3,494 ) — — Accrued Postretirement Health Care Obligation — — (25,929 ) (30,186 ) Accrued Liabilities — — (6,760 ) (8,418 ) Accrued Employee Benefits — — (21,311 ) (20,197 ) Net Amount Recognized at End of Year $ (224,510 ) $ (193,366 ) $ (54,000 ) $ (58,801 ) Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax: Net Actuarial Loss $ (242,565 ) $ (218,066 ) $ (10,571 ) $ (11,815 ) Prior Service Credit (Cost) (3 ) (125 ) — 433 Net Amount Recognized at End of Year $ (242,568 ) $ (218,191 ) $ (10,571 ) $ (11,382 ) The accumulated benefit obligation for all defined benefit pension plans was $998 million and $959 million at June 30, 2019 and July 1, 2018 , respectively. The Company recognizes the funded status of its pension plan in the Consolidated Balance Sheets. The funded status is the difference between the projected benefit obligation and the fair value of its plan assets. The projected benefit obligation is the actuarial present value of all benefits expected to be earned by the employees’ service adjusted for future potential wage increases. Pension plan liabilities are revalued annually, or when an event occurs that requires remeasurement, based on updated assumptions and information about the individuals covered by the plan. The pension benefit obligation and related pension expense or income are impacted by certain actuarial assumptions, including the discount rate, mortality tables, and the expected rate of return on plan assets. The discount rate is selected using a methodology that matches plan cash flows with a selection of Standard and Poor’s AA or higher rated bonds, resulting in a discount rate that is consistent with a bond yield curve with comparable cash flows. In estimating the expected return on plan assets, the Company considers the historical returns on plan assets, adjusted for forward looking considerations, including inflation assumptions and active management of the plan’s invested assets. These rates are evaluated on an annual basis considering such factors as market interest rates and historical asset performance. For pension and other postretirement plans, accumulated actuarial gains and losses in excess of a 10 percent corridor are amortized on a straight-line basis from the date recognized over the average remaining life expectancy of all participants. Any prior service costs are amortized on a straight-line basis over the average remaining service of impacted employees at the time the unrecognized prior service cost was established. Approximately half of the costs related to defined pension benefit and other postretirement plans are included in cost of sales; the remainder is included in selling, general and administrative expenses. The following table summarizes the plans’ income and expense for the three years indicated (in thousands): Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Components of Net Periodic (Income) Expense: Service Cost-Benefits Earned During the Year $ 4,541 $ 2,402 $ 6,757 $ 106 $ 135 $ 191 Interest Cost on Projected Benefit Obligation 39,720 43,068 43,357 2,332 2,372 2,382 Expected Return on Plan Assets (54,327 ) (61,912 ) (64,427 ) — — — Amortization of: Prior Service Cost (Credit) 179 179 180 (729 ) (1,434 ) (2,654 ) Actuarial Loss 11,638 15,332 16,957 3,159 3,453 2,796 Plan Settlements 521 41,157 — — — — Net Periodic Expense $ 2,272 $ 40,226 $ 2,824 $ 4,868 $ 4,526 $ 2,715 Significant assumptions used in determining net periodic expense for the fiscal years indicated are as follows: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Discount Rate 4.30% 4.00% 3.75% 4.25% 3.85% 3.60% Expected Return on Plan Assets 7.05% 7.10% 7.25% n/a n/a n/a Compensation Increase Rate n/a n/a n/a n/a n/a n/a The amounts in Accumulated Other Comprehensive Income (Loss) that are expected to be recognized as components of net periodic (income) expense during the next fiscal year are as follows (in thousands): Pension Plans Other Postretirement Plans Prior Service Cost (Credit) $ (78 ) $ — Net Actuarial Loss (15,904 ) (2,998 ) The “Other Postretirement Benefit” plans are unfunded. For measurement purposes a 5.8% annual rate of increase in the per capita cost of covered health care claims was assumed for the Company for fiscal year 2019 decreasing gradually to 4.5% for the fiscal year 2038 . The health care cost trend rate assumptions have a significant effect on the amounts reported. An increase of one percentage point would increase the accumulated postretirement benefit by $0.8 million and would increase the service and interest cost by $41 thousand for fiscal 2019 . A corresponding decrease of one percentage point would decrease the accumulated postretirement benefit by $0.8 million and decrease the service and interest cost by $46 thousand for the fiscal year 2019 . During the fourth quarter of fiscal 2018, the Company annuitized a portion of the qualified pension plan obligation which removed approximately $100 million of pension benefit obligation and offsetting assets. This transaction resulted in a non-cash pre-tax charge of $41.2 million ( $29.6 million after tax) during 2018. Plan Assets A Board of Directors appointed Investment Committee (“Committee”) manages the investment of the pension plan assets. The Committee has established and operates under an Investment Policy. It determines the asset allocation and target ranges based upon periodic asset/liability studies and capital market projections. The Committee retains external investment managers to invest the assets. The Investment Policy prohibits certain investment transactions, such as lettered stock, commodity contracts, margin transactions and short selling, unless the Committee gives prior approval. The Company’s pension plan’s current target and asset allocations at June 30, 2019 and July 1, 2018 , by asset category are as follows: Plan Assets at Year-end Asset Category Target % 2019 2018 Domestic Equities 14%-25% 19% 24% International Equities 14%-26% 19% 16% Global Equities 2%-8% 5% —% Hedge Funds 2%-8% 4% —% Alternatives 3%-9% 6% 7% Fixed Income 37%-53% 45% 51% Cash Equivalents 0%-3% 2% 2% 100% 100% The plan’s investment strategy is based on an expectation that, over time, equity securities will provide higher total returns than debt securities, but with greater risk. The plan primarily minimizes the risk of large losses through diversification of investments by asset class, by investing in different types of styles within the classes, using a number of different managers, and by structuring a dedicated fixed income allocation to better match future cash flows from plan assets with the future cash flows of the projected benefit obligation. The Committee monitors the asset allocation and investment performance monthly, with a more comprehensive quarterly review with its investment advisor. The plan’s expected return on assets is based on management’s and the Committee’s expectations of long-term average rates of return to be achieved by the plan’s investments. These expectations are based on the plan’s historical returns and expected returns for the asset classes in which the plan is invested. The Company has adopted the fair value provisions for the plan assets of its pension plans. The Company categorizes plan assets within a three level fair value hierarchy, as described in Note 6 . Investments stated at fair value as determined by quoted market prices (Level 1) include: Short-Term Investments: Short-Term Investments include cash and money market mutual funds that invest in short-term securities and are valued based on cost, which approximates fair value. Equity Securities: U.S. Common Stocks and International Mutual Funds are valued at the last reported sales price on the last business day of the fiscal year. Investments stated at estimated fair value using significant observable inputs (Level 2) include: Fixed Income Securities: Fixed Income Securities include investments in domestic bond collective trusts that are not traded publicly, but the underlying assets held in these funds are traded on active markets and the prices are readily observable. The investment in the trusts is valued at the last quoted price on the last business day of the fiscal year. Fixed Income Securities also include corporate and government bonds that are valued using a bid evaluation process with data provided by independent pricing sources. Investments stated at estimated fair value using net asset value per share as the practical expedient include: Other Investments: Other Investments include investments in limited partnerships and are valued at estimated fair value, as determined with the assistance of each respective limited partnership, based on the net asset value of the investment as of the balance sheet date, which is subject to judgment. The fair value of the major categories of the pension plans’ investments are presented below (in thousands): June 30, 2019 Category Total Level 1 Level 2 NAV Short-Term Investments: $ 11,982 $ 11,982 $ — $ — Fixed Income Securities: 351,029 — 283,392 67,637 Equity Securities: U.S. common stocks 148,967 50,919 — 98,048 International mutual funds 149,899 — — 149,899 Global equities 36,491 — — 36,491 Other Investments: Venture capital funds (A) 20,633 — — 20,633 Hedge funds 32,698 — — 32,698 Debt funds (B) 1,777 — — 1,777 Real estate funds (C) 770 — — 770 Private equity funds (D) 18,929 — — 18,929 Fair Value of Plan Assets at End of Year $ 773,175 $ 62,901 $ 283,392 $ 426,882 July 1, 2018 Category Total Level 1 Level 2 NAV Short-Term Investments: $ 17,061 $ 17,061 $ — $ — Fixed Income Securities: 394,188 — 394,188 — Equity Securities: U.S. common stocks 183,030 183,030 — — International mutual funds 118,674 118,674 — — Other Investments: Venture capital funds (A) 26,078 — — 26,078 Debt funds (B) 2,778 — — 2,778 Real estate funds (C) 1,166 — — 1,166 Private equity funds (D) 22,656 — — 22,656 Fair Value of Plan Assets at End of Year $ 765,631 $ 318,765 $ 394,188 $ 52,678 (A) This category invests in a combination of public and private securities of companies in financial distress, spin-offs, or new projects focused on technology and manufacturing. (B) This fund primarily invests in the debt of various entities including corporations and governments in emerging markets, mezzanine financing, or entities that are undergoing, are considered likely to undergo or have undergone a reorganization. (C) This category invests primarily in real estate related investments, including real estate properties, securities of real estate companies and other companies with significant real estate assets as well as real estate related debt and equity securities. (D) Primarily represents investments in all sizes of mostly privately held operating companies in the following core industry sectors: healthcare, energy, financial services, technology-media-telecommunications and industrial and consumer. Contributions During fiscal 2019, the Company made no voluntary cash contributions to the qualified pension plan. Based upon current regulations and actuarial studies the Company is required to make no minimum contributions to the qualified pension plan in fiscal 2020, but the Company may choose to make discretionary contributions. The Company may be required to make further required contributions in future years or the future expected funding requirements may change depending on a variety of factors including the actual return on plan assets, the funded status of the plan in future periods, and changes in actuarial assumptions or regulations. Estimated Future Benefit Payments Projected benefit payments from the plans as of June 30, 2019 are estimated as follows (in thousands): Pension Benefits Other Postretirement Benefits Year Ending Qualified Non-Qualified Retiree Medical Retiree Life 2020 $ 63,368 $ 3,477 $ 5,335 $ 1,425 2021 63,435 3,512 4,236 1,432 2022 63,128 3,586 3,632 1,437 2023 62,664 3,619 3,130 1,437 2024 62,042 3,653 2,605 1,435 2024-2028 293,444 18,316 7,897 7,004 Defined Contribution Plans Employees of the Company may participate in a defined contribution savings plan that allows participants to contribute a portion of their earnings in accordance with plan specifications. A maximum of 1.5% to 4.0% of each participant’s salary, depending upon the participant’s group, is matched by the Company. Additionally, all domestic non-bargaining employees receive a Company non-elective contribution of 3.0% of the employee’s pay. The Company contributions totaled $14.9 million in fiscal year 2019 and $14.5 million in 2018 and 2017 , respectively. Postemployment Benefits The Company accrues the expected cost of postemployment benefits over the years that the employees render service. These benefits apply only to employees who become disabled while actively employed, or who terminate with at least thirty years of service and retire prior to age sixty-five. The items include disability payments, life insurance and medical benefits. These amounts were discounted using a 3.55% interest rate for fiscal 2019 and 4.25% interest rate for fiscal 2018 . Amounts are included in Accrued Employee Benefits in the Consolidated Balance Sheets. |
Equity
Equity | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Equity: Share Repurchases On April 21, 2016, the Board of Directors authorized $50 million in funds for use in the common share repurchase program which expired on June 29, 2018 . On April 25, 2018, the Board of Directors authorized an additional $50 million in funds for use in the common share repurchase program expiring June 30, 2020 . As of June 30, 2019 , the total remaining authorization was $38 million . Share repurchases, among other things, allow the Company to offset any potentially dilutive impacts of share-based compensation. The common share repurchase program authorizes the purchase of shares of the Company's common stock on the open market or in private transactions from time to time, depending on market conditions and certain governing debt covenants. In fiscal 2019 , the Company repurchased 725,321 shares on the open market at a total cost of $11.9 million , or $16.46 per share. There were 467,183 shares repurchased in fiscal 2018 at a total cost of $10.3 million , or $22.07 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | BRIGGS & STRATTON CORPORATION (Commission File No. 1-1370) EXHIBIT INDEX 2019 ANNUAL REPORT ON FORM 10-K No. Document Description 3.1 Articles of Incorporation. (Filed as Exhibit 3.2 to the Company’s Report on Form 10-Q for the quarter ended October 2, 1994 and incorporated by reference herein.) 3.1(a) Amendment to Articles of Incorporation. (Filed as Exhibit 3.1 to the Company’s Report on Form 10-Q for the quarter ended September 26, 2004 and incorporated by reference herein.) 3.2 Bylaws, as amended to April 21, 2016. (Filed as Exhibit 3.2 to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 4.1 Indenture, dated December 20, 2010, between Briggs & Stratton Corporation and Wells Fargo Bank, National Association, as Trustee. (Filed as Exhibit 4.1 to the Company’s Report on Form 8-K/A, dated December 15, 2010 and incorporated by reference herein.) 4.2 First Supplemental Indenture, dated December 20, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Wells Fargo Bank, National Association, as Trustee. (Filed as Exhibit 4.2 to the Company’s Report on Form 8-K/A, dated December 15, 2010 and incorporated by reference herein.) 4.3 Description of Capital Stock (Filed herewith) 10.1* Amended and Restated Supplemental Executive Retirement Plan. (Filed as Exhibit 10.2 to the Company’s Report on Form 10-Q for the quarter ended April 1, 2012 and incorporated by reference herein.) 10.1(a)* Amendment to the Amended and Restated Supplemental Executive Retirement Plan. (Filed as Exhibit 10.2 to the Company's Report on Form 8-K dated December 14, 2012 and incorporated by reference herein.) 10.1(b)* Amendment to the Amended and Restated Supplemental Executive Retirement Plan. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q for the quarter ended March 31, 2019 and incorporated by reference herein.) 10.2* Annual Incentive Plan. (Filed herewith) 10.3* Form of Officer Change of Control Employment Agreement for officers elected on or before June 28, 2009. (Filed as Exhibit 10.2 to the Company’s Report on Form 8-K dated December 8, 2008 and incorporated by reference herein.) 10.3(a)* Amended and Restated Form of Change of Control Employment Agreement for new officers elected between June 29, 2009 and October 14, 2009. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-K for fiscal year ended June 28, 2009 and incorporated by reference herein.) 10.3(b)* Amended and Restated Form of Change of Control Employment Agreement for new officers of the Company elected after October 14, 2009. (Filed as Exhibit 10.1 to the Company’s Report on Form 8-K dated October 14, 2009 and incorporated by reference herein.) 10.4* Trust Agreement with an independent trustee to provide payments under various compensation agreements with Company employees upon the occurrence of a change in control. (Filed as Exhibit 10.5(a) to the Company’s Report on Form 10-K for fiscal year ended July 2, 1995 and incorporated by reference herein.) 10.4(a)* Amendment to Trust Agreement with an independent trustee to provide payments under various compensation agreements with Company employees. (Filed as Exhibit 10.5(b) to the Company’s Report on Form 10-K for fiscal year ended July 2, 1995 and incorporated by reference herein.) 10.4(b)* Amendment to Trust Agreement with an independent trustee to provide payments under various compensation agreements with Company employees. (Filed as Exhibit 10.4(b) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2011 and incorporated by reference herein.) 10.5* Briggs & Stratton Corporation 2014 Omnibus Incentive Plan. (Filed as Exhibit B to the Company’s 2014 Annual Meeting Proxy Statement and incorporated by reference herein.) 10.5(a)* Amendment to Briggs & Stratton Corporation 2014 Omnibus Incentive Plan. (Filed as Exhibit 10.5(a) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(a)(1)* Amendment to Briggs & Stratton Corporation 2014 Omnibus Incentive Plan. (Filed Exhibit 10.5(a)(1) to the Company’s Report on Form 10-K for fiscal year ended July 2, 2017 and incorporated by reference herein.) 10.5(b)* Form of Restricted Stock Award Agreement under the 2014 Omnibus Incentive Plan for awards granted prior to August 22, 2016. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-Q for the quarter ended September 28, 2014 and incorporated by reference herein.) 10.5(c)* Form of Restricted Stock Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted prior to August 22, 2016. (Filed as Exhibit 10.4 to the Company’s Report on Form 10-Q for the quarter ended September 28, 2014 and incorporated by reference herein.) 10.5(d)* Form of Stock Option Agreement under the 2014 Omnibus Incentive Plan for awards granted prior to August 22, 2016. (Filed as Exhibit 10.2 to the Company’s Report on Form 10-Q for the quarter ended September 28, 2014 and incorporated by reference herein.) 10.5(e)* Briggs & Stratton Corporation Officer Long Term Incentive Award Program. (Filed as Exhibit 10.5(e) to the Company’s Report on Form 10-K for the fiscal year ended July 1, 2018 and incorporated by reference herein.) 10.5(f)* Form of Stock Option Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(f) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(g)* Form of Restricted Stock Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(g) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(h)* Form of Restricted Stock Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(h) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(i)* Form of Performance Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(i) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(j)* Form of Performance Share Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(j) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.7* Form of Officer Employment Agreement for officers elected prior to August 15, 2018. (Filed as Exhibit 10.1 to the Company’s Report on Form 8-K dated December 8, 2008, and incorporated by reference herein.) 10.7(a)* Form of Officer Employment Agreement for officers elected on or after August 15, 2018. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q dated November 6, 2018, and incorporated by reference herein.) 10.8* Supplemental Employee Retirement Plan, as amended and restated effective as of January 1, 2017. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q for the quarter ended January 1, 2017 and incorporated by reference herein.) 10.9* Amended and Restated Deferred Compensation Plan for Directors. (Filed as Exhibit 10.9 to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.10* Summary of Director Compensation. (Filed as Exhibit 10.10 to the Company’s Report on Form 10-K for the fiscal year ended July 1, 2018 and incorporated by reference herein.) 10.11* Executive Life Insurance Plan. (Filed as Exhibit 10.17 to the Company’s Report on Form 10-K for fiscal year ended June 27, 1999 and incorporated by reference herein.) 10.11(a)* Amendment to Executive Life Insurance Program. (Filed as Exhibit 10.14(a) to the Company’s Report on Form 10-K for fiscal year ended June 29, 2003 and incorporated by reference herein.) 10.11(b)* Amendment to Executive Life Insurance Plan. (Filed as Exhibit 10.14(b) to the Company’s Report on Form 10-K for fiscal year ended June 27, 2004 and incorporated by reference herein.) 10.12* Amended & Restated Key Employee Savings and Investment Plan. (Filed as Exhibit 10.15 to the Company’s Report on Form 10-K for fiscal year ended June 30, 2013 and incorporated by reference herein.) 10.13* Executive Officer Consultant Reimbursement Arrangement. (Filed as Exhibit 10.19 to the Company’s Report on Form 10-K for fiscal year ended June 27, 1999 and incorporated by reference herein.) 10.14* Briggs & Stratton Product Program for Directors. (Filed as Exhibit 10.18 to the Company’s Report on Form 10-K for fiscal year ended June 30, 2002 and incorporated by reference herein.) 10.14(a)* Amendment to the Briggs & Stratton Product Program for Directors. (Filed as Exhibit 10.17(a) to the Company’s Report on Form 10-K for fiscal year ended June 27, 2010 and incorporated by reference herein.) 10.15 Stipulation of Settlement, dated February 24, 2010. (Filed as Exhibit 10.1 to the Company’s Report on Form 8-K dated February 24, 2010 and incorporated by reference herein.) 10.16* Letter Agreement, dated October 25, 2017, between Briggs & Stratton Corporation and Todd J. Teske. (Filed as Exhibit 10.10 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.17 Amended and Restated Multicurrency Credit Agreement, dated as of March 25, 2016, among Briggs & Stratton Corporation, Briggs & Stratton AG, the other subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as syndication agent and BMO Harris Bank, N.A., Bank of America, N.A., Wells Fargo Bank, National Association and PNC Bank, National Association, as documentation agents. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q for the quarter ended March 27, 2016 and incorporated by reference herein.) 10.17(a) Consent Memorandum effective August 13, 2019. (Filed as Exhibit 10.17(a) to the Company’s Report on Form 8-K dated August 13, 2019 and incorporated by reference herein.) 10.18* Briggs & Stratton Corporation 2017 Omnibus Incentive Plan. (Filed as Exhibit B to the Company’s 2017 Annual Meeting Proxy Statement and incorporated by reference herein.) 10.19* Form of Stock Option Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.2 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.20* Form of Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017 and prior to August 15, 2018. (Filed as Exhibit 10.3 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.21(a)* Form of Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after August 15, 2018. (Filed as Exhibit 10.2 to the Company’s Report on Form 10-Q, for the quarter ended September 30, 2018 and incorporated by reference herein.) 10.21* Form of Restricted Stock Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.4 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.22* Form Restricted Stock Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.5 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.23* Form of CEO Stock Option Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.6 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.24* Form of CEO Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.7 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.25* Form of CEO Restricted Stock Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.8 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.25(a)* Form of CEO Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after August 15, 2018. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-Q for the quarter ended September 30, 2018 and incorporated by reference herein.) 10.26* Form of CEO Restricted Stock Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.9 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.27* Expatriate Agreement between Briggs & Stratton Corporation, Briggs & Stratton International, Inc. and William H. Reitman. (Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated September 6, 2013 and incorporated herein by reference.) 10.27(a)* Amendment to Expatriate Agreement between Briggs & Stratton Corporation, Briggs & Stratton International, Inc. and William H. Reitman, dated April 24, 2015. (Filed as Exhibit 10.16(a) to the Company’s Report on Form 10-K for fiscal year ended June 28, 2015 and incorporated herein by reference) 10.27(b)* Second Amendment to Expatriate Agreement between Briggs & Stratton International, Inc. and William H. Reitman, dated January 19, 2016. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-Q for the quarter ended March 27, 2016 and incorporated herein by reference.) 10.27(c)* Third Amendment to Expatriate Agreement between Briggs & Stratton International, Inc. and William H. Reitman, dated August 11, 2016. (Filed as Exhibit 10.16(c) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 12 Computation of Ratio of Earnings (Losses) to Fixed Charges. (Filed herewith.) 21 Subsidiaries of the Registrant. (Filed herewith.) 23.1 Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm. (Filed herewith.) 31.1 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.) 31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.) 32.1 Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Furnished herewith.) 32.2 Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Furnished herewith.) 101 The following financial information from the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2018, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets at June 30, 2019 and July 1, 2018; (ii) Consolidated Statements of Operations for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (iii) the Consolidated Condensed Statements of Comprehensive Income (Loss) for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (iv) Consolidated Statements of Shareholders’ Investment for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (v) Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (vi) Notes to Consolidated Financial Statements; and (vii) Schedule II-Valuation and Qualifying Accounts. * Management contracts and executive compensation plans and arrangements required to be filed as exhibits pursuant to Item 15(a)(3) of Form 10-K. |
Revenue Footnote (Notes)
Revenue Footnote (Notes) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Text Block] | ( 5 ) Revenue The Company has adopted ASC 606 using the modified retrospective approach. Revenue is measured based on consideration expected to be received from a customer, and excludes any cash discounts, volume rebates and discounts, floor plan interest, advertising allowances, and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer, which is generally upon shipment. Nature of Revenue The Company’s revenues primarily consist of sales of engines and products to its customers. The Company considers the purchase orders, which may also be governed by purchasing agreements, to be the contracts with customers. For each contract, the Company considers delivery of the engines and products to be the identified performance obligations. The following is a description of principal activities, separated by reportable segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 9 . The Engines segment principally generates revenue by providing gasoline engines and power solutions to OEMs which serve commercial and residential markets primarily for lawn and garden equipment applications. The Company typically enters into annual purchasing plans with its engine customers. In certain cases, the Company has entered into longer supply arrangements of two to three years; however, these longer term supply agreements do not generally create unfulfilled performance obligations. The sale of products to OEMs represents a single performance obligation. Revenue is recognized at a point in time when the product is shipped as substantially all engines are not customized for each customer and there is an alternative use for such inventory. The amount of revenue recognized is adjusted for variable consideration such as tiered volume discounts and rebates. Revenue recognized is also adjusted based on an estimate of future returns. The Products segment generates revenue through the sale of end user products through retail distribution, independent distributor and dealer networks, the mass retail channel, and the rental channel. These channels primarily serve commercial and residential end users. The sale of products to the various distribution networks represents a single performance obligation. Revenue is recognized at a point in time when the product is shipped as the products are not typically customized for each customer; therefore, there is an alternative use for such inventory. The amount of revenue recognized is adjusted for variable consideration such as tiered volume discounts, rebates, and floor plan interest. Revenue recognized is also adjusted based on an estimate of future returns. Both the Engines and Products segments account for variable consideration and estimated returns according to the same accounting policies. The Company offers a variable discount if certain customers reach established volume goals in the form of tiered volume discounts. The Company applies the expected value approach to estimate the value of the discount which is then applied as a reduction to the transaction price. Included in net sales for the year ended June 30, 2019 were reductions for tiered volume discounts of $12.8 million . The Company offers rebates in the form of promotional allowances to incentivize certain customers to make purchases. The expected value approach is used to estimate the rebate value relative to these allowances which is then applied as a reduction of the transaction price. Included in net sales for the year ended June 30, 2019 were reductions for rebates of $7.7 million . Included in net sales are costs associated with programs under which the Company shares the expense of financing certain dealer and distributor inventories, referred to as floor plan expense. This represents interest for a pre-established length of time based on a variable rate (LIBOR) plus a fixed percentage from a contract with a third party financing source for dealer and distributor inventory purchases. Sharing the cost of these financing arrangements is used by the Company as a marketing incentive for customers to purchase the Company's products to have floor stock for end users to purchase. The Company enters into interest rate swaps to hedge cash flows for a portion of its interest rate risk. The financing costs, net of the related gain or loss on interest rate swaps, are recorded at the time of sale as a reduction of net sales. Included in net sales for the year ended June 30, 2019 were financing costs, net of the related gain or loss on interest rate swaps, of $11.0 million . The Company estimates the expected number of returns based on historical return rates and reduces revenue by the amount of expected returns. The Company requires prepayment on sales in limited circumstances, but the contract liability related to prepayments is immaterial as of June 30, 2019 and represents less than 1% of total sales. The Company offers a standard warranty that is not sold separately on substantially all products that the Company sells which is accounted for as an assurance warranty. Accordingly, no component of the transaction price is allocated to the standard warranty. The Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. During year ended June 30, 2019 , the Company recorded $4.1 million of bad debt expense related to a trade customer declaring bankruptcy. Disaggregation of Revenue In the following table, revenue is disaggregated by primary product application. The table also includes a reconciliation of the disaggregated revenue with the reportable segments for the year ended June 30, 2019 , as follows (in thousands): Year Ended June 30, 2019 Engines Products Eliminations Total Commercial $ 206,992 $ 388,445 $ (23,908 ) $ 571,529 Residential 781,715 543,692 (60,331 ) 1,265,076 Total $ 988,707 $ 932,137 $ (84,239 ) $ 1,836,605 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | The Company’s fiscal year consists of 52 or 53 weeks, ending on the Sunday nearest the last day of June in each year. The 2019, 2018 and 2017 fiscal years were each 52 weeks long. All references to years relate to fiscal years rather than calendar years. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its majority owned domestic and foreign subsidiaries after elimination of intercompany accounts and transactions. Investments in companies for which the Company has significant influence are accounted for by the equity method. |
Accounting Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. |
Cash and Cash Equivalents | This caption includes cash, commercial paper and certificates of deposit. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Receivables | Receivables are recorded at their original carrying value less reserves for estimated uncollectible accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. |
Inventories | Inventories are stated at cost, which does not exceed market. The last-in, first-out (LIFO) method was used for determining the cost of approximately 50% of total inventories at June 30, 2019 and 50% at July 1, 2018 . The cost for the remaining inventories was determined using the first-in, first-out (FIFO) method. If the FIFO inventory valuation method had been used exclusively, inventories would have been $70.1 million and $65.4 million higher at the end of fiscal 2019 and 2018 , respectively. The LIFO inventory adjustment was determined on an overall basis, and accordingly, each class of inventory reflects an allocation based on the FIFO amounts. |
Goodwill and Other Intangible Assets | Goodwill reflects the cost of acquisitions in excess of the fair values assigned to identifiable net assets acquired. Goodwill is assigned to reporting units based upon the expected benefit of the synergies of the acquisition. Other Intangible Assets reflect identifiable intangible assets that arose from purchase acquisitions. Other Intangible Assets are primarily comprised of tradenames, patents and customer relationships. Goodwill and tradenames, which are considered to have indefinite lives, are not amortized; however, both must be tested for impairment at least annually. Amortization is recorded on a straight-line basis for other intangible assets with finite lives. Patents have been assigned an estimated useful life of 15 years. Customer relationships have been assigned an estimated useful life of 14 to 25 years. The Company performed the required impairment tests in fiscal 2019 , 2018 and 2017 . There were no goodwill impairment charges or other intangible asset impairment charges recorded in fiscal 2019, fiscal 2018 or fiscal 2017. |
Investments | Investments represent the Company’s investments in unconsolidated affiliated companies. Financial information of the unconsolidated affiliated companies are accounted for by the equity method, generally on a lag of one month or less. Combined results of operations of unconsolidated affiliated companies for the fiscal year (in thousands): 2019 2018 2017 Results of Operations: Sales $ 311,373 $ 324,931 $ 321,938 Cost of Goods Sold 243,374 248,585 244,346 Gross Profit $ 67,999 $ 76,346 $ 77,592 Net Income $ 17,782 $ 22,158 $ 22,217 Combined balance sheets of unconsolidated affiliated companies as of fiscal year-end (in thousands): 2019 2018 Financial Position: Assets: Current Assets $ 147,702 $ 150,382 Noncurrent Assets 38,496 45,186 186,198 195,568 Liabilities: Current Liabilities $ 55,533 $ 54,007 Noncurrent Liabilities 14,599 20,027 70,132 74,034 Equity $ 116,066 $ 121,534 Net sales to equity method investees were approximately $87.7 million , $107.2 million and $113.6 million in 2019 , 2018 and 2017 , respectively. Purchases of finished products from equity method investees were approximately $122.5 million , $115.5 million and $94.9 million in 2019 , 2018 and 2017 , respectively. The Company uses the equity method to account for this investment, and the earnings of the unconsolidated affiliate are allocated between the Engines and Products segments. As of June 30, 2019 and July 1, 2018 , the Company's total investment in the venture was $25.7 million and $25.2 million , respectively, and its ownership percentage was 38.0% . The Company's equity method investments also include entities that are suppliers for the Engines segment. The Company concluded that its equity method investments are integral to its business. The equity method investments provide manufacturing and distribution functions, which are important parts of its operations. During fiscal 2016, the Company had an investment in marketable securities, which related to its ownership of common stock of a publicly-traded company. The Company classified its investment as available-for-sale securities, and it was reported at fair value. Unrealized gains and losses, net of the related tax effects, were reported as a separate component of Accumulated Other Comprehensive Income (Loss). During the fourth quarter of fiscal 2016, the Company sold its investment in marketable securities and recognized a gain of $3.3 million , which is recorded in Other Income, Net in the Consolidated Statements of Operations. The Company received proceeds related to the sale in the first quarter of fiscal 2017. |
Debt Issuance Costs | Direct and incremental costs incurred in obtaining loans or in connection with the issuance of long-term debt are capitalized and amortized to interest expense over the terms of the related credit agreements. The debt issuance costs are recorded as a direct deduction from the carrying value of the debt liability; however, the Company classifies debt issuance costs related to the revolving credit facility as an asset, regardless of whether it has any outstanding borrowings on the line of credit arrangements. Approximately $0.8 million , $0.9 million , and $0.9 million of debt issuance costs and original issue discounts were amortized to interest expense in each of fiscal years 2019 , 2018 and 2017 , respectively. |
Plant and Equipment and Depreciation | Plant and equipment are stated at historical cost. For financial reporting purposes, plant and equipment are depreciated primarily by the straight line method over the estimated useful lives of the assets which generally range from 3 to 15 years for software, from 20 to 40 years for land improvements, from 20 to 50 years for buildings, and 3 to 20 years for machinery and equipment. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in cost of goods sold or engineering, selling, general and administrative expenses. Depreciation expense was approximately $59.8 million , $53.8 million and $51.9 million during fiscal years 2019 , 2018 and 2017 , respectively. |
Impairment of Property, Plant and Equipment | Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. |
Warranty | The Company recognizes the cost associated with its standard warranty on engines and products at the time of sale. The general warranty period begins at the time of sale and typically covers two years, but may vary due to product type and geographic location. The amount recognized is based on historical failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): 2019 2018 Balance, Beginning of Period $ 45,327 $ 43,108 Payments (23,939 ) (23,704 ) Provision for Current Year Warranties 24,454 24,436 Changes in Estimates 1,760 1,487 Balance, End of Period $ 47,602 $ 45,327 |
Revenue Recognition | |
Income Taxes | The provision for income taxes includes federal, state and foreign income taxes currently payable and those deferred because of temporary differences between the financial statement and tax bases of assets and liabilities. The deferred income tax asset and liability represent temporary differences relating to assets and liabilities. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. |
Retirement Plans | The Company has noncontributory, defined benefit retirement plans and postretirement benefit plans covering certain employees. Retirement benefits represent a form of deferred compensation, which are subject to change due to changes in assumptions. Management reviews underlying assumptions on an annual basis. Refer to Note 16 . |
Research and Development Costs | Expenditures relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred and recorded in engineering, selling, general and administrative expenses within the Consolidated Statements of Operations. The amounts charged against income were $22.8 million , $23.6 million and $23.0 million in fiscal 2019 , 2018 and 2017 , respectively. |
Advertising Costs | Advertising costs, included in engineering, selling, general and administrative expenses within the Consolidated Statements of Operations, are expensed as incurred. These expenses totaled $21.6 million in fiscal 2019 , $19.8 million in fiscal 2018 and $19.0 million in fiscal 2017 . |
Shipping and Handling Fees | Revenue received from shipping and handling fees is reflected in net sales and related shipping costs are recorded in cost of goods sold. Shipping fee revenue for fiscal 2019 , 2018 and 2017 was $5.6 million , $5.6 million and $5.0 million , respectively. |
Foreign Currency Translation | Foreign currency balance sheet accounts are translated into dollars at the rates of exchange in effect at fiscal year-end. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to a separate component of Shareholders’ Investment. Foreign currency transaction gains and losses are included in the results of operations in the period incurred. The Company recorded pre-tax foreign currency transaction gains of $0.9 million , $0.6 million , and $0.8 million during fiscal 2019 , 2018 , and 2017 , respectively. |
Earnings Per Share | The Company computes earnings (loss) per share using the two-class method, an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company’s unvested grants of restricted stock, restricted stock units, and deferred stock awards contain non-forfeitable rights to dividends (whether paid or unpaid), which are required to be treated as participating securities and included in the computation of basic (loss) earnings per share. Information on earnings (loss) per share is as follows (in thousands except per share data): Fiscal Year Ended June 30, 2019 July 1, 2018 July 2, 2017 Net Income (Loss) $ (54,083 ) $ (11,320 ) $ 56,650 Less: Earnings Allocated to Participating Securities (576 ) (301 ) (1,274 ) Net Income (Loss) available to Common Shareholders $ (54,659 ) $ (11,621 ) $ 55,376 Average Shares of Common Stock Outstanding 41,647 42,068 42,178 Incremental Common Shares Applicable to Common Stock Options and Performance Shares Based on the Common Stock Average Market Price During the Period — — 85 Shares Used in Calculating Diluted Earnings Per Share 41,647 42,068 42,263 Adjustment for Participating Securities — — 792 Diluted Average Shares, Including Participating Securities 41,647 42,068 43,055 Basic Earnings (Loss) Per Share $ (1.31 ) $ (0.28 ) $ 1.31 Diluted Earnings (Loss) Per Share $ (1.31 ) $ (0.28 ) $ 1.31 The dilutive effect of the potential exercise of outstanding stock-based awards to acquire common shares is calculated using the treasury stock method. No options to purchase shares of common stock were excluded from the calculation of diluted earnings (loss) per share as the exercise prices were greater than the average market price of the common shares. |
Derivative Instruments & Hedging Activity | The Company enters into derivative contracts designated as cash flow hedges to manage certain interest rate, foreign currency and commodity exposures. Company policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into derivative instruments for trading purposes where the sole objective is to generate profits. The Company formally designates the financial instrument as a hedge of a specific underlying exposure and documents both the risk management objectives and strategies for undertaking the hedge. The Company formally assesses, both at the inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the forecasted cash flows of the related underlying exposure. Because of the high degree of effectiveness between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the forecasted cash flows of the underlying exposures being hedged. Derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities, measured at fair value. The effective portion of gains or losses on derivatives designated as cash flow hedges are reported as a component of Accumulated Other Comprehensive Income (Loss) (AOCI) and reclassified into earnings in the same periods during which the hedged transaction affects earnings. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized in earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised, the cash flow hedge is dedesignated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Balance Sheets of Unconsolidated Affiliated Companies | Combined balance sheets of unconsolidated affiliated companies as of fiscal year-end (in thousands): 2019 2018 Financial Position: Assets: Current Assets $ 147,702 $ 150,382 Noncurrent Assets 38,496 45,186 186,198 195,568 Liabilities: Current Liabilities $ 55,533 $ 54,007 Noncurrent Liabilities 14,599 20,027 70,132 74,034 Equity $ 116,066 $ 121,534 |
Changes in Accrued Warranty Costs | The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): 2019 2018 Balance, Beginning of Period $ 45,327 $ 43,108 Payments (23,939 ) (23,704 ) Provision for Current Year Warranties 24,454 24,436 Changes in Estimates 1,760 1,487 Balance, End of Period $ 47,602 $ 45,327 |
Information on Earnings (Loss) Per Share | Information on earnings (loss) per share is as follows (in thousands except per share data): Fiscal Year Ended June 30, 2019 July 1, 2018 July 2, 2017 Net Income (Loss) $ (54,083 ) $ (11,320 ) $ 56,650 Less: Earnings Allocated to Participating Securities (576 ) (301 ) (1,274 ) Net Income (Loss) available to Common Shareholders $ (54,659 ) $ (11,621 ) $ 55,376 Average Shares of Common Stock Outstanding 41,647 42,068 42,178 Incremental Common Shares Applicable to Common Stock Options and Performance Shares Based on the Common Stock Average Market Price During the Period — — 85 Shares Used in Calculating Diluted Earnings Per Share 41,647 42,068 42,263 Adjustment for Participating Securities — — 792 Diluted Average Shares, Including Participating Securities 41,647 42,068 43,055 Basic Earnings (Loss) Per Share $ (1.31 ) $ (0.28 ) $ 1.31 Diluted Earnings (Loss) Per Share $ (1.31 ) $ (0.28 ) $ 1.31 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per (Loss) Share |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive income (loss) (in thousands): Fiscal Year Ended June 30, 2019 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (28,928 ) $ 6,486 $ (229,830 ) $ (252,272 ) Other Comprehensive Loss Before Reclassification (2,839 ) (14,842 ) (45,678 ) (63,359 ) Income Tax Benefit — 3,562 10,963 14,525 Net Other Comprehensive Loss Before Reclassifications (2,839 ) (11,280 ) (34,715 ) (48,834 ) Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — (1,713 ) — (1,713 ) Realized (Gains) Losses - Commodity Contracts (1) — (149 ) — (149 ) Realized (Gains) Losses - Interest Rate Swaps (1) — (1,127 ) — (1,127 ) Amortization of Prior Service Costs (Credits) (2) — — (550 ) (550 ) Amortization of Actuarial Losses (2) — — 14,797 14,797 Total Reclassifications Before Tax — (2,989 ) 14,247 11,258 Income Tax Expense (Benefit) — 717 (3,419 ) (2,702 ) Net Reclassifications — (2,272 ) 10,828 8,556 Other Comprehensive Loss (2,839 ) (13,552 ) (23,887 ) (40,278 ) Ending Balance $ (31,767 ) $ (7,066 ) $ (253,717 ) $ (292,550 ) (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. Fiscal Year Ended July 1, 2018 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (24,744 ) $ (76 ) $ (275,206 ) $ (300,026 ) Other Comprehensive Income (Loss) Before Reclassification (4,184 ) 4,303 43,802 43,921 Income Tax Benefit (Expense) — (936 ) (10,556 ) (11,492 ) Net Other Comprehensive Income (Loss) Before Reclassifications (4,184 ) 3,367 33,246 32,429 Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — 4,795 — 4,795 Realized (Gains) Losses - Commodity Contracts (1) — 96 — 96 Realized (Gains) Losses - Interest Rate Swaps (1) — (251 ) — (251 ) Amortization of Prior Service Costs (Credits) (2) — — (1,255 ) (1,255 ) Amortization of Actuarial Losses (2) — — 18,785 18,785 Total Reclassifications Before Tax — 4,640 17,530 22,170 Income Tax Expense (Benefit) — (1,445 ) (5,400 ) (6,845 ) Net Reclassifications — 3,195 12,130 15,325 Other Comprehensive Income (Loss) (4,184 ) 6,562 45,376 47,754 Ending Balance $ (28,928 ) $ 6,486 $ (229,830 ) $ (252,272 ) (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. Fiscal Year Ended July 2, 2017 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (23,863 ) $ (1,552 ) $ (313,035 ) $ (338,450 ) Other Comprehensive Income (Loss) Before Reclassification (881 ) 1,003 43,947 44,069 Income Tax Benefit (Expense) — (376 ) (16,480 ) (16,856 ) Net Other Comprehensive Income (Loss) Before Reclassifications (881 ) 627 27,467 27,213 Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — 357 — 357 Realized (Gains) Losses - Commodity Contracts (1) — 258 — 258 Realized (Gains) Losses - Interest Rate Swaps (1) — 743 — 743 Amortization of Prior Service Costs (Credits) (2) — — (2,474 ) (2,474 ) Amortization of Actuarial Losses (2) — — 19,053 19,053 Plan Settlement (2) — — — — Total Reclassifications Before Tax — 1,358 16,579 17,937 Income Tax Expense (Benefit) — (509 ) (6,217 ) (6,726 ) Net Reclassifications — 849 10,362 11,211 Other Comprehensive Income (Loss) (881 ) 1,476 37,829 38,424 Ending Balance $ (24,744 ) $ (76 ) $ (275,206 ) $ (300,026 ) (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and July 1, 2018 (in thousands): Fair Value Measurement Using June 30, 2019 Level 1 Level 2 Level 3 Assets: Derivatives $ 1,564 $ — $ 1,564 $ — Liabilities: Derivatives $ 12,014 $ — $ 12,014 $ — Fair Value Measurement Using July 1, 2018 Level 1 Level 2 Level 3 Assets: Derivatives $ 7,938 $ — $ 7,938 $ — Liabilities: Derivatives $ 231 $ — $ 231 $ — |
Fair Value, by Balance Sheet Grouping | The estimated fair market values of the Company’s indebtedness is (in thousands): 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value 6.875% Senior Notes $ 195,464 $ 203,593 $ 200,888 $ 214,000 Borrowings on Revolver $ 160,540 $ 160,540 $ 48,036 $ 48,036 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the fiscal years ended June 30, 2019 and July 1, 2018 are as follows (in thousands): Engines Products Total Goodwill Balance at July 2, 2017 $ 138,074 $ 23,575 $ 161,649 Acquisitions — 2,573 2,573 Effect of Translation (682 ) (340 ) (1,022 ) Goodwill Balance at July 1, 2018 $ 137,392 $ 25,808 $ 163,200 Acquisitions — 6,786 6,786 Effect of Translation (297 ) (7 ) (304 ) Goodwill Balance at June 30, 2019 $ 137,095 $ 32,587 $ 169,682 |
Schedule of Other Intangible Assets | The Company’s other intangible assets as of June 30, 2019 and July 1, 2018 are as follows (in thousands) in the table below. After an intangible asset has been fully amortized, it is removed from the table in the subsequent year. 2019 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortized Intangible Assets: Patents $ 9,600 $ (7,410 ) $ 2,190 $ 7,300 $ (6,813 ) $ 487 Customer Relationships 61,381 (21,634 ) 39,747 60,182 (18,995 ) 41,187 Other Intangible Assets 854 (513 ) 341 839 (774 ) 65 Effect of Translation (6,862 ) 790 (6,072 ) (6,887 ) 1,065 (5,822 ) Total Amortized Intangible Assets 64,973 (28,767 ) 36,206 61,434 (25,517 ) 35,917 Unamortized Intangible Assets: Tradenames 64,667 — 64,667 63,967 — 63,967 Effect of Translation (4,135 ) — (4,135 ) (4,020 ) — (4,020 ) Total Unamortized Intangible Assets 60,532 — 60,532 59,947 — 59,947 Total Intangible Assets $ 125,505 $ (28,767 ) $ 96,738 $ 121,381 $ (25,517 ) $ 95,864 |
Schedule of Estimated Amortization Expense of Other Intangible Assets | The estimated amortization expense of other intangible assets for the next five years is (in thousands): 2020 $ 2,790 2021 2,790 2022 2,790 2023 2,790 2024 2,790 $ 13,950 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, U.S. and Foreign | Components of income (loss) before income taxes consists of the following (in thousands): 2019 2018 2017 U.S. $ (73,878 ) $ (5,350 ) $ 66,555 Foreign 5,780 16,451 13,106 Total $ (68,098 ) $ 11,101 $ 79,661 |
Schedule of Provision (Credit) for Income Tax Benefit | The provision (credit) for income taxes consists of the following (in thousands): 2019 2018 2017 Current Federal $ (1,488 ) $ (12,072 ) $ 7,333 State 1,473 (4,413 ) 933 Foreign 4,469 3,556 4,429 4,454 (12,929 ) 12,695 Deferred Federal $ (16,855 ) $ 31,235 $ 8,156 State (2,653 ) 4,462 583 Foreign 1,039 (347 ) 1,577 (18,469 ) 35,350 10,316 Total $ (14,015 ) $ 22,421 $ 23,011 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. statutory tax rates to the effective tax rates on income follows: 2019 2018 2017 U.S. Statutory Rate 21.0 % 28.0 % 35.0 % State Taxes, Net of Federal Tax Benefit 4.0 % 3.7 % 1.5 % Impact of Foreign Operations and Tax Rates 0.2 % (2.5 )% (2.1 )% Valuation Allowance (8.6 )% 6.7 % 5.3 % Changes to Unrecognized Tax Benefits (2.8 )% 1.3 % (4.5 )% U.S. Manufacturers Deduction — % — % (2.4 )% Research & Development Credit (1) 9.9 % (25.2 )% (3.1 )% Return to Provision Adjustment (0.3 )% 15.6 % (0.4 )% U.S. Tax Reform (2) (1.4 )% 189.9 % — % Impact of Joint Venture Business Optimization (0.6 )% 4.5 % — % Worthless Stock Loss — % (10.8 )% — % Warehouse Charitable Contribution — % (9.5 )% — % Other, Net (0.8 )% 0.2 % (0.4 )% Effective Tax Rate 20.6 % 201.9 % 28.9 % |
Schedule of Deferred Income Taxes | The components of deferred income taxes were as follows (in thousands): Long-Term Asset (Liability): 2019 2018 Difference Between Book and Tax Related to: Pension Cost $ 22,425 $ 14,570 Accumulated Depreciation (57,073 ) (53,103 ) Intangibles (34,883 ) (34,166 ) Accrued Employee Benefits 34,982 34,108 Postretirement Health Care Obligation 6,300 7,275 Inventory 11,396 10,710 Warranty 11,351 10,842 Payroll & Workers Compensation Accruals 4,828 6,474 Valuation Allowance (35,271 ) (28,537 ) Net Operating Loss/Credit Carryforwards 70,953 39,849 Other Accrued Liabilities 7,414 6,205 Miscellaneous 548 (2,359 ) Deferred Income Tax Asset (Liability) $ 42,970 $ 11,868 |
Schedule of Unrecognized Tax Benefits Roll Forward | The change to the gross unrecognized tax benefits of the Company during the fiscal years ended June 30, 2019 , July 1, 2018 , and July 3, 2016 is reconciled as follows: Unrecognized Tax Benefits (in thousands): 2019 2018 2017 Beginning Balance $ 5,899 $ 5,986 $ 10,922 Changes based on tax positions related to prior year — — (861 ) Additions based on tax positions related to current year 2,382 981 461 Settlements with taxing authorities — — (4,437 ) Lapse of statute of limitations (1,306 ) (1,068 ) (99 ) Ending Balance $ 6,975 $ 5,899 $ 5,986 |
Segment and Geographic Inform_2
Segment and Geographic Information and Significant Customers (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company uses “segment income (loss)” as the primary measure to evaluate operating performance and allocate capital resources for the Engines and Products segments. The Company defines segment income (loss) as income from operations plus equity in earnings of unconsolidated affiliates. Summarized segment data is as follows (in thousands): 2019 2018 2017 NET SALES: Engines $ 988,707 $ 1,066,318 $ 1,098,809 Products 932,137 904,007 778,378 Eliminations (84,239 ) (89,031 ) (91,084 ) $ 1,836,605 $ 1,881,294 $ 1,786,103 GROSS PROFIT: Engines $ 193,069 $ 252,645 $ 262,036 Products 108,984 144,933 121,141 Eliminations (1,002 ) 504 652 $ 301,051 $ 398,082 $ 383,829 SEGMENT INCOME (LOSS) (1) Engines $ (15,519 ) $ 9,593 $ 81,641 Products (22,675 ) 22,012 12,530 Eliminations (1,002 ) 504 652 $ (39,196 ) $ 32,109 $ 94,823 INTEREST EXPENSE (29,242 ) (25,320 ) (20,293 ) OTHER INCOME, Net 340 4,312 5,131 Income (Loss) Before Income Taxes (68,098 ) 11,101 79,661 PROVISION (CREDIT) FOR INCOME TAXES (14,015 ) 22,421 23,011 Net Income (Loss) $ (54,083 ) $ (11,320 ) $ 56,650 ASSETS: Engines $ 952,820 $ 965,677 $ 987,943 Products 646,417 547,540 551,207 Eliminations (47,806 ) (69,251 ) (88,171 ) $ 1,551,431 $ 1,443,966 $ 1,450,979 CAPITAL EXPENDITURES: Engines $ 31,680 $ 79,724 $ 67,218 Products 20,774 23,479 15,923 $ 52,454 $ 103,203 $ 83,141 DEPRECIATION & AMORTIZATION: Engines $ 48,932 $ 44,361 $ 44,384 Products 15,268 13,897 11,799 $ 64,200 $ 58,258 $ 56,183 |
Restructuring Charges Impact on Gross Profit by Segment | Pre-tax business optimization and litigation settlement charges impact on gross profit (in thousands): 2019 2018 2017 Engines $ 2,662 $ 2,854 $ — Products 9,207 3,775 — Total $ 11,869 $ 6,629 $ — |
Restructuring Charges, Goodwill and Tradename Impairment, and Litigation Settlement Charges Impact on Operating Income Loss by Segment | Pre-tax business optimization charges, acquisition-related charges, bad debt charges related to major retailer bankruptcy, pension settlement charges, and litigation charges impact on segment income (loss) is as follows (in thousands): 2019 2018 2017 Engines $ 29,149 $ 53,913 $ — Products 22,648 8,113 — Total $ 51,797 $ 62,026 $ — |
Schedule of Geographic Sales Based on Product Shipment Destination | Information regarding the Company’s geographic sales based on product shipment destination (in thousands): 2019 2018 2017 United States $ 1,354,635 $ 1,346,687 $ 1,246,015 All Other Countries 481,970 534,607 540,088 Total $ 1,836,605 $ 1,881,294 $ 1,786,103 |
Schedule of Company's Net Property Plant and Equipment Based on Geographic Location | Information regarding the Company’s net plant and equipment based on geographic location (in thousands): 2019 2018 2017 United States $ 392,146 $ 405,808 $ 347,664 All Other Countries 18,899 16,272 17,216 Total $ 411,045 $ 422,080 $ 364,880 |
Schedule of Revenue by Major Customers by Reporting Segments | Sales to the following customers in the Company’s Engines segment amount to greater than or equal to 10% of consolidated net sales (in thousands): 2019 2018 2017 Customer: Net Sales % Net Sales % Net Sales % MTD $ 220,714 12 % $ 192,402 10 % $ 205,339 11 % HOP 139,920 8 % 184,008 10 % 207,882 12 % $ 360,634 20 % $ 376,410 20 % $ 413,221 23 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Commitments for Non-Cancelable Operating Leases [Table Text Block] | Future minimum lease commitments for all non-cancelable operating leases as of June 30, 2019 are as follows (in thousands): Fiscal Year Commitments 2020 $ 20,453 2021 18,179 2022 14,784 2023 10,345 2024 9,515 Thereafter 73,639 Total future minimum lease commitments $ 146,915 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following is a summary of the Company’s indebtedness (in thousands): 2019 2018 Multicurrency Credit Agreement $ 160,540 $ 48,025 Total Short-Term Debt $ 160,540 $ 48,025 Note Payable (NMTC transaction) 7,685 7,685 Unamortized Debt Issuance Costs associated with Note Payable 820 1,009 8,505 8,694 6.875% Senior Notes $ 195,464 $ 200,888 Unamortized Debt Issuance Costs associated with 6.875% Senior Notes 495 934 Total Long-Term Debt $ 194,969 $ 199,954 |
Other Income, Net Other Incom_2
Other Income, Net Other Income, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Income, Net [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The components of Other Income, Net are as follows (in thousands): 2019 2018 2017 Interest Income $ 520 $ 1,526 $ 1,203 Other Items (180 ) 2,786 3,928 Total $ 340 $ 4,312 $ 5,131 |
Stock Incentives (Tables)
Stock Incentives (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Schedule of Assumptions Used to Determine Fair Value | The assumptions used to determine fair value are as follows: Options Granted During 2019 2018 2017 Grant Date Fair Value $ 5.46 $ 4.64 $ 3.84 (Since options are only granted once per year, the grant date fair value equals the weighted average grant date fair value.) Assumptions: Risk-free Interest Rate 2.7 % 1.8 % 1.2 % Expected Volatility 32.9 % 30.7 % 29.3 % Expected Dividend Yield 2.7 % 2.7 % 2.9 % Expected Term (in Years) 5.5 5.5 5.5 |
Schedule of Options Outstanding | Information on the options outstanding is as follows: Options Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance, July 3, 2016 1,844,543 $ 19.48 Granted During the Year 496,880 19.15 Exercised During the Year (414,176 ) 18.76 Balance, July 2, 2017 1,927,247 $ 19.55 Granted During the Year 416,210 20.47 Exercised During the Year (184,530 ) 20.44 Balance, July 1, 2018 2,158,927 $ 19.64 Granted During the Year 367,870 20.96 Exercised During the Year (87,398 ) 20.82 Forfeited During the Year (58,390 ) 18.93 Expired During the Year (112,929 ) 20.82 Balance, June 30, 2019 2,268,080 $ 19.78 7.03 $ — Exercisable, June 30, 2019 1,005,090 $ 19.36 5.73 $ — |
Schedule of Options Grants Outstanding Summary | Options Outstanding (as of June 30, 2019) Fiscal Year Grant Date Date Exercisable Expiration Date Exercise Price Options Outstanding 2015 10/21/2014 10/21/2017 10/21/2024 $ 18.83 543,520 2016 8/18/2015 8/18/2018 8/18/2025 $ 19.90 501,990 2017 8/22/2016 8/22/2019 8/22/2026 $ 19.15 496,880 2018 8/21/2017 8/21/2020 8/21/2027 $ 20.47 416,210 2019 8/20/2018 8/20/2021 2/20/2028 $ 20.96 367,870 |
Summary of Nonvested Shares | Below is a summary of the status of the Company’s nonvested shares as of June 30, 2019 , and changes during the year then ended: Deferred Stock / RSU Restricted Stock Stock Options Performance Shares Shares Wtd. Avg. Grant Date Fair Value Shares Wtd. Avg. Grant Date Fair Value Shares Wtd. Avg. Grant Date Fair Value Shares Wtd. Avg. Grant Date Fair Value Nonvested shares/units, July 1, 2018 78,821 $ 19.52 695,255 $ 19.87 1,415,080 $ 4.03 106,440 $ 19.90 Granted 10,902 20.03 138,550 20.73 367,870 5.46 — — Cancelled — — (26,940 ) 20.77 (17,970 ) 3.84 — — Vested (36,442 ) 19.13 (265,255 ) 19.54 (501,990 ) 3.72 (106,440 ) 19.90 Nonvested shares/units, June 30, 2019 53,281 $ 19.89 541,610 $ 20.20 1,262,990 $ 4.58 — $ — |
Schedule of Stock-Based Compensation Programs | The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense: 2019 2018 2017 Stock Options: Pretax compensation expense $ 2,275 $ 2,060 $ 1,862 Tax benefit (553 ) (576 ) (698 ) Stock option expense, net of tax $ 1,722 $ 1,484 $ 1,164 Restricted Stock: Pretax compensation expense $ 3,697 $ 3,302 $ 3,291 Tax benefit (848 ) (924 ) (1,234 ) Restricted stock expense, net of tax $ 2,849 $ 2,378 $ 2,057 Deferred Stock: Pretax compensation expense $ 1,208 $ 1,046 $ 585 Tax benefit (338 ) (292 ) (220 ) Deferred stock expense, net of tax $ 870 $ 754 $ 365 Performance Shares: Pretax compensation expense $ — $ 267 $ (815 ) Tax expense (benefit) — (75 ) 306 Performance Share expense, net of tax $ — $ 192 $ (509 ) Total Stock-Based Compensation: Pretax compensation expense $ 7,180 $ 6,675 $ 4,923 Tax benefit (1,739 ) (1,867 ) (1,846 ) Total stock-based compensation, net of tax $ 5,441 $ 4,808 $ 3,077 |
Derivative Instruments & Hedg_2
Derivative Instruments & Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Foreign Currency Derivatives [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2019 and July 1, 2018 , the Company had the following outstanding derivative contracts (in thousands): Contract Notional Amount June 30, 2019 July 1, 2018 Interest Rate: LIBOR Interest Rate (U.S. Dollars) Fixed 230,000 110,000 Foreign Currency: Australian Dollar Sell 17,611 35,833 Brazilian Real Sell 13,436 28,822 Canadian Dollar Sell 14,610 14,430 Chinese Renminbi Buy 70,555 62,209 Euro Sell 2,750 32,592 Japanese Yen Buy 0 587,500 Commodity: Natural Gas (Therms) Buy 7,627 10,553 |
Location and Fair Value of Derivative Instruments on Consolidated Balance Sheets | The location and fair value of derivative instruments reported in the Consolidated Balance Sheets are as follows (in thousands): Balance Sheet Location Asset (Liability) Fair Value June 30, 2019 July 1, 2018 Interest rate contracts: Other Current Assets $ — $ 161 Other Long-Term Assets, Net 876 3,844 Other Long-Term Liabilities (11,634 ) — Foreign currency contracts: Other Current Assets 672 3,881 Other Long-Term Assets, Net 16 31 Accrued Liabilities (179 ) (195 ) Other Long-Term Liabilities (11 ) — Commodity contracts: Other Current Assets — 16 Other Long-Term Assets, Net — 5 Accrued Liabilities (176 ) (7 ) Other Long-Term Liabilities (15 ) (29 ) $ (10,451 ) $ 7,707 |
Effect of Derivatives on Consolidated Statements of Operations | The effect of derivatives designated as hedging instruments on the Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows (in thousands): Twelve months ended June 30, 2019 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (3,307 ) Net Sales $ 1,127 $ — Foreign currency contracts – sell (1,604 ) Net Sales 1,139 — Foreign currency contracts – buy (1,039 ) Cost of Goods Sold 574 — Commodity contracts (133 ) Cost of Goods Sold 149 — Interest rate contracts $ (7,469 ) Interest Expense $ — $ — $ (13,552 ) $ 2,989 $ — Twelve months ended July 1, 2018 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 1,921 Net Sales $ 251 $ — Foreign currency contracts – sell 2,925 Net Sales (4,116 ) — Foreign currency contracts – buy 1,731 Cost of Goods Sold (679 ) — Commodity contracts (17 ) Cost of Goods Sold (96 ) — $ 6,560 $ (4,640 ) $ — Twelve months ended July 2, 2017 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 1,973 Net Sales $ (743 ) $ — Foreign currency contracts – sell (887 ) Net Sales 1,785 — Foreign currency contracts – buy 297 Cost of Goods Sold (2,142 ) — Commodity contracts 93 Cost of Goods Sold (258 ) — $ 1,476 $ (1,358 ) $ — |
Schedule of Forward Currency Contracts Outstanding | The Company had the following forward currency contracts outstanding at the end of fiscal 2019 with the notional value shown in local currency and the contract value, fair value, and (gain) loss at fair value shown in U.S. dollars: Hedge In Thousands Notional Value Contract Value Fair Value (Gain) Loss at Fair Value Conversion Currency Latest Expiration Date Currency Contract Australian Dollar Sell 17,611 12,660 12,329 (331 ) U.S. February 2020 Brazilian Real Sell 13,436 3,455 3,461 30 U.S. December 2019 Canadian Dollar Sell 14,610 9,968 11,171 88 U.S. August 2020 Chinese Renminbi Buy 70,555 10,154 10,267 (113 ) U.S. October 2020 Euro Sell 2,750 3,313 3,161 (151 ) U.S. March 2020 The Company had the following forward currency contracts outstanding at the end of fiscal 2018 with the notional value shown in local currency and the contract value, fair value, and (gain) loss at fair value shown in U.S. dollars: Hedge In Thousands Notional Value Contract Value Fair Value (Gain) Loss at Fair Value Conversion Currency Latest Expiration Date Currency Contract Australian Dollar Sell 35,833 27,880 26,558 (1,322 ) U.S. May 2019 Brazilian Real Buy 28,822 6,682 7,571 (889 ) U.S. March 2019 Canadian Dollar Sell 14,430 11,393 11,020 (373 ) U.S. August 2019 Chinese Renminbi Buy 62,209 9,234 9,324 (90 ) U.S. June 2019 Euro Sell 32,592 39,648 38,603 (1,045 ) U.S. July 2019 Japanese Yen Buy 587,500 5,316 5,324 — U.S. November 2018 |
Employee Benefit Costs (Tables)
Employee Benefit Costs (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Reconciliation of Obligations, Plan Assets and Funded Status | The following provides a reconciliation of obligations, plan assets and funded status of the plans for the two years indicated (in thousands): Pension Benefits Other Postretirement Benefits Actuarial Assumptions: 2019 2018 2019 2018 Discounted Rate Used to Determine Present Value of Projected Benefit Obligation 3.60 % 4.30 % 3.55 % 4.25 % Weighted Average Expected Long-Term Rate of Return on Plan Assets 6.90 % 7.00 % n/a n/a Change in Benefit Obligations: Projected Benefit Obligation at Beginning of Year $ 959,010 $ 1,116,705 $ 58,801 $ 66,693 Service Cost 4,541 2,402 106 135 Interest Cost 39,720 43,068 2,332 2,372 Plan Settlements (1,720 ) (101,553 ) — — Plan Participant Contributions — — 2,212 2,346 Actuarial (Gain) Loss 59,362 (27,541 ) 1,364 (146 ) Benefits Paid (63,228 ) (74,071 ) (10,815 ) (12,599 ) Projected Benefit Obligation at End of Year $ 997,685 $ 959,010 $ 54,000 $ 58,801 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Year $ 765,644 $ 870,606 $ — $ — Actual Return on Plan Assets 68,745 36,914 — — Plan Participant Contributions — — 2,212 2,346 Employer Contributions 3,734 33,748 8,603 10,253 Benefits Paid (63,228 ) (74,071 ) (10,815 ) (12,599 ) Plan Settlements (1,720 ) (101,553 ) — — Fair Value of Plan Assets at End of Year $ 773,175 $ 765,644 $ — $ — Funded Status: Plan Assets (Less Than) in Excess of Projected Benefit Obligation $ (224,510 ) $ (193,366 ) $ (54,000 ) $ (58,801 ) Amounts Recognized on the Balance Sheets: Accrued Pension Cost $ (221,033 ) $ (189,872 ) $ — $ — Accrued Wages and Salaries (3,477 ) (3,494 ) — — Accrued Postretirement Health Care Obligation — — (25,929 ) (30,186 ) Accrued Liabilities — — (6,760 ) (8,418 ) Accrued Employee Benefits — — (21,311 ) (20,197 ) Net Amount Recognized at End of Year $ (224,510 ) $ (193,366 ) $ (54,000 ) $ (58,801 ) Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Net of Tax: Net Actuarial Loss $ (242,565 ) $ (218,066 ) $ (10,571 ) $ (11,815 ) Prior Service Credit (Cost) (3 ) (125 ) — 433 Net Amount Recognized at End of Year $ (242,568 ) $ (218,191 ) $ (10,571 ) $ (11,382 ) |
Schedule of Income and Expense for Retirement Plans | The following table summarizes the plans’ income and expense for the three years indicated (in thousands): Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Components of Net Periodic (Income) Expense: Service Cost-Benefits Earned During the Year $ 4,541 $ 2,402 $ 6,757 $ 106 $ 135 $ 191 Interest Cost on Projected Benefit Obligation 39,720 43,068 43,357 2,332 2,372 2,382 Expected Return on Plan Assets (54,327 ) (61,912 ) (64,427 ) — — — Amortization of: Prior Service Cost (Credit) 179 179 180 (729 ) (1,434 ) (2,654 ) Actuarial Loss 11,638 15,332 16,957 3,159 3,453 2,796 Plan Settlements 521 41,157 — — — — Net Periodic Expense $ 2,272 $ 40,226 $ 2,824 $ 4,868 $ 4,526 $ 2,715 |
Schedule of Significant Assumptions Used in Determining Net Periodic Expense | Significant assumptions used in determining net periodic expense for the fiscal years indicated are as follows: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Discount Rate 4.30% 4.00% 3.75% 4.25% 3.85% 3.60% Expected Return on Plan Assets 7.05% 7.10% 7.25% n/a n/a n/a Compensation Increase Rate n/a n/a n/a n/a n/a n/a |
Schedule of Accumulated Other Comprehensive Income (Loss) that are Expected to be Recognized as Components of Net Periodic (Income) Expense During the Next Fiscal Year | The amounts in Accumulated Other Comprehensive Income (Loss) that are expected to be recognized as components of net periodic (income) expense during the next fiscal year are as follows (in thousands): Pension Plans Other Postretirement Plans Prior Service Cost (Credit) $ (78 ) $ — Net Actuarial Loss (15,904 ) (2,998 ) |
Schedule of Defined Benefit Plan Targeted and Actual Plan Asset Allocations | The Company’s pension plan’s current target and asset allocations at June 30, 2019 and July 1, 2018 , by asset category are as follows: Plan Assets at Year-end Asset Category Target % 2019 2018 Domestic Equities 14%-25% 19% 24% International Equities 14%-26% 19% 16% Global Equities 2%-8% 5% —% Hedge Funds 2%-8% 4% —% Alternatives 3%-9% 6% 7% Fixed Income 37%-53% 45% 51% Cash Equivalents 0%-3% 2% 2% 100% 100% |
Schedule of The Fair Value of the Major Categories of Plan Assets | The fair value of the major categories of the pension plans’ investments are presented below (in thousands): June 30, 2019 Category Total Level 1 Level 2 NAV Short-Term Investments: $ 11,982 $ 11,982 $ — $ — Fixed Income Securities: 351,029 — 283,392 67,637 Equity Securities: U.S. common stocks 148,967 50,919 — 98,048 International mutual funds 149,899 — — 149,899 Global equities 36,491 — — 36,491 Other Investments: Venture capital funds (A) 20,633 — — 20,633 Hedge funds 32,698 — — 32,698 Debt funds (B) 1,777 — — 1,777 Real estate funds (C) 770 — — 770 Private equity funds (D) 18,929 — — 18,929 Fair Value of Plan Assets at End of Year $ 773,175 $ 62,901 $ 283,392 $ 426,882 July 1, 2018 Category Total Level 1 Level 2 NAV Short-Term Investments: $ 17,061 $ 17,061 $ — $ — Fixed Income Securities: 394,188 — 394,188 — Equity Securities: U.S. common stocks 183,030 183,030 — — International mutual funds 118,674 118,674 — — Other Investments: Venture capital funds (A) 26,078 — — 26,078 Debt funds (B) 2,778 — — 2,778 Real estate funds (C) 1,166 — — 1,166 Private equity funds (D) 22,656 — — 22,656 Fair Value of Plan Assets at End of Year $ 765,631 $ 318,765 $ 394,188 $ 52,678 (A) This category invests in a combination of public and private securities of companies in financial distress, spin-offs, or new projects focused on technology and manufacturing. (B) This fund primarily invests in the debt of various entities including corporations and governments in emerging markets, mezzanine financing, or entities that are undergoing, are considered likely to undergo or have undergone a reorganization. (C) This category invests primarily in real estate related investments, including real estate properties, securities of real estate companies and other companies with significant real estate assets as well as real estate related debt and equity securities. (D) Primarily represents investments in all sizes of mostly privately held operating companies in the following core industry sectors: healthcare, energy, financial services, technology-media-telecommunications and industrial and consumer. |
Schedule of Projected Benefit Payments | Projected benefit payments from the plans as of June 30, 2019 are estimated as follows (in thousands): Pension Benefits Other Postretirement Benefits Year Ending Qualified Non-Qualified Retiree Medical Retiree Life 2020 $ 63,368 $ 3,477 $ 5,335 $ 1,425 2021 63,435 3,512 4,236 1,432 2022 63,128 3,586 3,632 1,437 2023 62,664 3,619 3,130 1,437 2024 62,042 3,653 2,605 1,435 2024-2028 293,444 18,316 7,897 7,004 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | BRIGGS & STRATTON CORPORATION (Commission File No. 1-1370) EXHIBIT INDEX 2019 ANNUAL REPORT ON FORM 10-K No. Document Description 3.1 Articles of Incorporation. (Filed as Exhibit 3.2 to the Company’s Report on Form 10-Q for the quarter ended October 2, 1994 and incorporated by reference herein.) 3.1(a) Amendment to Articles of Incorporation. (Filed as Exhibit 3.1 to the Company’s Report on Form 10-Q for the quarter ended September 26, 2004 and incorporated by reference herein.) 3.2 Bylaws, as amended to April 21, 2016. (Filed as Exhibit 3.2 to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 4.1 Indenture, dated December 20, 2010, between Briggs & Stratton Corporation and Wells Fargo Bank, National Association, as Trustee. (Filed as Exhibit 4.1 to the Company’s Report on Form 8-K/A, dated December 15, 2010 and incorporated by reference herein.) 4.2 First Supplemental Indenture, dated December 20, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Wells Fargo Bank, National Association, as Trustee. (Filed as Exhibit 4.2 to the Company’s Report on Form 8-K/A, dated December 15, 2010 and incorporated by reference herein.) 4.3 Description of Capital Stock (Filed herewith) 10.1* Amended and Restated Supplemental Executive Retirement Plan. (Filed as Exhibit 10.2 to the Company’s Report on Form 10-Q for the quarter ended April 1, 2012 and incorporated by reference herein.) 10.1(a)* Amendment to the Amended and Restated Supplemental Executive Retirement Plan. (Filed as Exhibit 10.2 to the Company's Report on Form 8-K dated December 14, 2012 and incorporated by reference herein.) 10.1(b)* Amendment to the Amended and Restated Supplemental Executive Retirement Plan. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q for the quarter ended March 31, 2019 and incorporated by reference herein.) 10.2* Annual Incentive Plan. (Filed herewith) 10.3* Form of Officer Change of Control Employment Agreement for officers elected on or before June 28, 2009. (Filed as Exhibit 10.2 to the Company’s Report on Form 8-K dated December 8, 2008 and incorporated by reference herein.) 10.3(a)* Amended and Restated Form of Change of Control Employment Agreement for new officers elected between June 29, 2009 and October 14, 2009. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-K for fiscal year ended June 28, 2009 and incorporated by reference herein.) 10.3(b)* Amended and Restated Form of Change of Control Employment Agreement for new officers of the Company elected after October 14, 2009. (Filed as Exhibit 10.1 to the Company’s Report on Form 8-K dated October 14, 2009 and incorporated by reference herein.) 10.4* Trust Agreement with an independent trustee to provide payments under various compensation agreements with Company employees upon the occurrence of a change in control. (Filed as Exhibit 10.5(a) to the Company’s Report on Form 10-K for fiscal year ended July 2, 1995 and incorporated by reference herein.) 10.4(a)* Amendment to Trust Agreement with an independent trustee to provide payments under various compensation agreements with Company employees. (Filed as Exhibit 10.5(b) to the Company’s Report on Form 10-K for fiscal year ended July 2, 1995 and incorporated by reference herein.) 10.4(b)* Amendment to Trust Agreement with an independent trustee to provide payments under various compensation agreements with Company employees. (Filed as Exhibit 10.4(b) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2011 and incorporated by reference herein.) 10.5* Briggs & Stratton Corporation 2014 Omnibus Incentive Plan. (Filed as Exhibit B to the Company’s 2014 Annual Meeting Proxy Statement and incorporated by reference herein.) 10.5(a)* Amendment to Briggs & Stratton Corporation 2014 Omnibus Incentive Plan. (Filed as Exhibit 10.5(a) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(a)(1)* Amendment to Briggs & Stratton Corporation 2014 Omnibus Incentive Plan. (Filed Exhibit 10.5(a)(1) to the Company’s Report on Form 10-K for fiscal year ended July 2, 2017 and incorporated by reference herein.) 10.5(b)* Form of Restricted Stock Award Agreement under the 2014 Omnibus Incentive Plan for awards granted prior to August 22, 2016. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-Q for the quarter ended September 28, 2014 and incorporated by reference herein.) 10.5(c)* Form of Restricted Stock Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted prior to August 22, 2016. (Filed as Exhibit 10.4 to the Company’s Report on Form 10-Q for the quarter ended September 28, 2014 and incorporated by reference herein.) 10.5(d)* Form of Stock Option Agreement under the 2014 Omnibus Incentive Plan for awards granted prior to August 22, 2016. (Filed as Exhibit 10.2 to the Company’s Report on Form 10-Q for the quarter ended September 28, 2014 and incorporated by reference herein.) 10.5(e)* Briggs & Stratton Corporation Officer Long Term Incentive Award Program. (Filed as Exhibit 10.5(e) to the Company’s Report on Form 10-K for the fiscal year ended July 1, 2018 and incorporated by reference herein.) 10.5(f)* Form of Stock Option Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(f) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(g)* Form of Restricted Stock Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(g) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(h)* Form of Restricted Stock Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(h) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(i)* Form of Performance Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(i) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.5(j)* Form of Performance Share Unit Award Agreement under the 2014 Omnibus Incentive Plan for awards granted on or after August 22, 2016 through October 24, 2017. (Filed as Exhibit 10.5(j) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.7* Form of Officer Employment Agreement for officers elected prior to August 15, 2018. (Filed as Exhibit 10.1 to the Company’s Report on Form 8-K dated December 8, 2008, and incorporated by reference herein.) 10.7(a)* Form of Officer Employment Agreement for officers elected on or after August 15, 2018. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q dated November 6, 2018, and incorporated by reference herein.) 10.8* Supplemental Employee Retirement Plan, as amended and restated effective as of January 1, 2017. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q for the quarter ended January 1, 2017 and incorporated by reference herein.) 10.9* Amended and Restated Deferred Compensation Plan for Directors. (Filed as Exhibit 10.9 to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 10.10* Summary of Director Compensation. (Filed as Exhibit 10.10 to the Company’s Report on Form 10-K for the fiscal year ended July 1, 2018 and incorporated by reference herein.) 10.11* Executive Life Insurance Plan. (Filed as Exhibit 10.17 to the Company’s Report on Form 10-K for fiscal year ended June 27, 1999 and incorporated by reference herein.) 10.11(a)* Amendment to Executive Life Insurance Program. (Filed as Exhibit 10.14(a) to the Company’s Report on Form 10-K for fiscal year ended June 29, 2003 and incorporated by reference herein.) 10.11(b)* Amendment to Executive Life Insurance Plan. (Filed as Exhibit 10.14(b) to the Company’s Report on Form 10-K for fiscal year ended June 27, 2004 and incorporated by reference herein.) 10.12* Amended & Restated Key Employee Savings and Investment Plan. (Filed as Exhibit 10.15 to the Company’s Report on Form 10-K for fiscal year ended June 30, 2013 and incorporated by reference herein.) 10.13* Executive Officer Consultant Reimbursement Arrangement. (Filed as Exhibit 10.19 to the Company’s Report on Form 10-K for fiscal year ended June 27, 1999 and incorporated by reference herein.) 10.14* Briggs & Stratton Product Program for Directors. (Filed as Exhibit 10.18 to the Company’s Report on Form 10-K for fiscal year ended June 30, 2002 and incorporated by reference herein.) 10.14(a)* Amendment to the Briggs & Stratton Product Program for Directors. (Filed as Exhibit 10.17(a) to the Company’s Report on Form 10-K for fiscal year ended June 27, 2010 and incorporated by reference herein.) 10.15 Stipulation of Settlement, dated February 24, 2010. (Filed as Exhibit 10.1 to the Company’s Report on Form 8-K dated February 24, 2010 and incorporated by reference herein.) 10.16* Letter Agreement, dated October 25, 2017, between Briggs & Stratton Corporation and Todd J. Teske. (Filed as Exhibit 10.10 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.17 Amended and Restated Multicurrency Credit Agreement, dated as of March 25, 2016, among Briggs & Stratton Corporation, Briggs & Stratton AG, the other subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as syndication agent and BMO Harris Bank, N.A., Bank of America, N.A., Wells Fargo Bank, National Association and PNC Bank, National Association, as documentation agents. (Filed as Exhibit 10.1 to the Company’s Report on Form 10-Q for the quarter ended March 27, 2016 and incorporated by reference herein.) 10.17(a) Consent Memorandum effective August 13, 2019. (Filed as Exhibit 10.17(a) to the Company’s Report on Form 8-K dated August 13, 2019 and incorporated by reference herein.) 10.18* Briggs & Stratton Corporation 2017 Omnibus Incentive Plan. (Filed as Exhibit B to the Company’s 2017 Annual Meeting Proxy Statement and incorporated by reference herein.) 10.19* Form of Stock Option Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.2 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.20* Form of Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017 and prior to August 15, 2018. (Filed as Exhibit 10.3 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.21(a)* Form of Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after August 15, 2018. (Filed as Exhibit 10.2 to the Company’s Report on Form 10-Q, for the quarter ended September 30, 2018 and incorporated by reference herein.) 10.21* Form of Restricted Stock Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.4 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.22* Form Restricted Stock Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.5 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.23* Form of CEO Stock Option Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.6 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.24* Form of CEO Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.7 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.25* Form of CEO Restricted Stock Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.8 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.25(a)* Form of CEO Performance Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after August 15, 2018. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-Q for the quarter ended September 30, 2018 and incorporated by reference herein.) 10.26* Form of CEO Restricted Stock Unit Award Agreement under the Briggs & Stratton Corporation 2017 Omnibus Incentive Plan for awards to be granted on or after October 25, 2017. (Filed as Exhibit 10.9 to the Company’s Report on Form 8-K, dated October 25, 2017 and incorporated by reference herein.) 10.27* Expatriate Agreement between Briggs & Stratton Corporation, Briggs & Stratton International, Inc. and William H. Reitman. (Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated September 6, 2013 and incorporated herein by reference.) 10.27(a)* Amendment to Expatriate Agreement between Briggs & Stratton Corporation, Briggs & Stratton International, Inc. and William H. Reitman, dated April 24, 2015. (Filed as Exhibit 10.16(a) to the Company’s Report on Form 10-K for fiscal year ended June 28, 2015 and incorporated herein by reference) 10.27(b)* Second Amendment to Expatriate Agreement between Briggs & Stratton International, Inc. and William H. Reitman, dated January 19, 2016. (Filed as Exhibit 10.3 to the Company’s Report on Form 10-Q for the quarter ended March 27, 2016 and incorporated herein by reference.) 10.27(c)* Third Amendment to Expatriate Agreement between Briggs & Stratton International, Inc. and William H. Reitman, dated August 11, 2016. (Filed as Exhibit 10.16(c) to the Company’s Report on Form 10-K for fiscal year ended July 3, 2016 and incorporated by reference herein.) 12 Computation of Ratio of Earnings (Losses) to Fixed Charges. (Filed herewith.) 21 Subsidiaries of the Registrant. (Filed herewith.) 23.1 Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm. (Filed herewith.) 31.1 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.) 31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.) 32.1 Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Furnished herewith.) 32.2 Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Furnished herewith.) 101 The following financial information from the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2018, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets at June 30, 2019 and July 1, 2018; (ii) Consolidated Statements of Operations for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (iii) the Consolidated Condensed Statements of Comprehensive Income (Loss) for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (iv) Consolidated Statements of Shareholders’ Investment for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (v) Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2019, July 1, 2018, and July 2, 2017; (vi) Notes to Consolidated Financial Statements; and (vii) Schedule II-Valuation and Qualifying Accounts. * Management contracts and executive compensation plans and arrangements required to be filed as exhibits pursuant to Item 15(a)(3) of Form 10-K. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disaggregation of Revenue [Table Text Block] | In the following table, revenue is disaggregated by primary product application. The table also includes a reconciliation of the disaggregated revenue with the reportable segments for the year ended June 30, 2019 , as follows (in thousands): Year Ended June 30, 2019 Engines Products Eliminations Total Commercial $ 206,992 $ 388,445 $ (23,908 ) $ 571,529 Residential 781,715 543,692 (60,331 ) 1,265,076 Total $ 988,707 $ 932,137 $ (84,239 ) $ 1,836,605 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Percentage of LIFO Inventory | 50.00% | 50.00% | |
Value of higher inventory if the FIFO inventory valuation method is exclusively used | $ 70,100 | $ 65,400 | |
Net sales to equity method investees | 87,700 | 107,200 | $ 113,600 |
Purchases of finished products from equity method investees | 122,500 | 115,500 | 94,900 |
Equity Method Investments | 49,641 | 50,960 | |
Amortization of Financing Costs and Discounts | 800 | 900 | 900 |
Depreciation | 59,800 | 53,800 | 51,900 |
Research and Development | 22,800 | 23,600 | 23,000 |
Advertising costs | 21,600 | 19,800 | 19,000 |
Foreign Currency Transaction Gain (Loss), before Tax | $ 900 | (600) | 800 |
Gain on Sale of Investment in Marketable Securities | $ 3,300 | ||
Patents [Member] | |||
Weighted Average useful life, years | 15 years | ||
Minimum [Member] | Customer Relationships [Member] | |||
Weighted Average useful life, years | 14 years | ||
Maximum [Member] | Customer Relationships [Member] | |||
Weighted Average useful life, years | 25 years | ||
Independent Distributors [Member] | |||
Equity Method Investments | $ 25,700 | $ 25,200 | |
Equity Method Investment, Ownership Percentage | 38.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule Of Results Of Operations Of Unconsolidated Affiliated Companies) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Accounting Policies [Abstract] | |||
Sales | $ 311,373 | $ 324,931 | $ 321,938 |
Cost of Goods Sold | 243,374 | 248,585 | 244,346 |
Gross Profit | 67,999 | 76,346 | 77,592 |
Net Income | $ 17,782 | $ 22,158 | $ 22,217 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule Of Balance Sheets Of Unconsolidated Affiliated Companies) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 49,641 | $ 50,960 |
Equity Method Investment, Summarized Financial Information, Assets | ||
Current Assets | 147,702 | 150,382 |
Noncurrent Assets | 38,496 | 45,186 |
Total Assets | 186,198 | 195,568 |
Equity Method Investment, Summarized Financial Information, Liabilities | ||
Current Liabilities | 55,533 | 54,007 |
Noncurrent Liabilities | 14,599 | 20,027 |
Total Liabilities | 70,132 | 74,034 |
Equity | 116,066 | 121,534 |
Independent Distributors [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 25,700 | $ 25,200 |
Equity Method Investment, Ownership Percentage | 38.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Estimated Useful Lives Of Plant And Equipment) (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | Software [Member] | |
Plant and equipment estimated useful lives, years | 3 years |
Minimum [Member] | Land Improvements [Member] | |
Plant and equipment estimated useful lives, years | 20 years |
Minimum [Member] | Buildings [Member] | |
Plant and equipment estimated useful lives, years | 20 years |
Minimum [Member] | Machinery & Equipment [Member] | |
Plant and equipment estimated useful lives, years | 3 years |
Maximum [Member] | Land Improvements [Member] | |
Plant and equipment estimated useful lives, years | 40 years |
Maximum [Member] | Buildings [Member] | |
Plant and equipment estimated useful lives, years | 50 years |
Maximum [Member] | Machinery & Equipment [Member] | |
Plant and equipment estimated useful lives, years | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Changes In Accrued Warranty Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Accounting Policies [Abstract] | ||
Balance, Beginning of Period | $ 45,327 | $ 43,108 |
Payments | (23,939) | (23,704) |
Provision for Current Year Warranties | 24,454 | 24,436 |
Changes in Estimates | 1,760 | 1,487 |
Balance, End of Period | $ 47,602 | $ 45,327 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Information On Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Accounting Policies [Abstract] | |||
Net Income (Loss) | $ (54,083) | $ (11,320) | $ 56,650 |
Less: Earnings Allocated to Participating Securities | (576) | (301) | (1,274) |
Net Income (Loss) available to Common Shareholders | $ (54,659) | $ (11,621) | $ 55,376 |
Average Shares of Common Stock Outstanding (in shares) | 41,647 | 42,068 | 42,178 |
Incremental Common Shares Applicable to Common Stock Options and Performance Shares Based on the Common Stock Average Market Price During the Period | 0 | 0 | 85 |
Diluted Average Common Shares Outstanding (in shares) | 41,647 | 42,068 | 42,263 |
Adjustments for Participating Securities | 0 | 0 | 792 |
Diluted Shares Outstanding, Including Participating Securities | 41,647 | 42,068 | 43,055 |
Basic Earnings Per Share (in dollars per share) | $ (1.31) | $ (0.28) | $ 1.31 |
Diluted Earnings Per Share (in dollars per share) | $ (1.31) | $ (0.28) | $ 1.31 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (252,272) | $ (300,026) | $ (338,450) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (63,359) | 43,921 | 44,069 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 14,525 | (11,492) | (16,856) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (48,834) | 32,429 | 27,213 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 11,258 | 22,170 | 17,937 | |
Other Comprehensive Income (Loss), Tax | (2,702) | (6,845) | (6,726) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 8,556 | 15,325 | 11,211 | |
Other Comprehensive Income (Loss), Net of Tax | (40,278) | 47,754 | 38,424 | |
Ending Balance | (292,550) | (252,272) | (300,026) | |
Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (550) | (1,255) | (2,474) |
Actuarial Losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 14,797 | 18,785 | 19,053 |
Pension Settlement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | |||
Foreign Exchange Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (1,713) | 4,795 | 357 |
Commodity Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (149) | 96 | 258 |
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (1,127) | (251) | 743 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (28,928) | (24,744) | (23,863) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (2,839) | (4,184) | (881) | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2,839) | (4,184) | (881) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (2,839) | (4,184) | (881) | |
Ending Balance | (31,767) | (28,928) | (24,744) | |
Accumulated Translation Adjustment [Member] | Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Translation Adjustment [Member] | Actuarial Losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Translation Adjustment [Member] | Pension Settlement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | |||
Accumulated Translation Adjustment [Member] | Foreign Exchange Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Translation Adjustment [Member] | Commodity Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Translation Adjustment [Member] | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 6,486 | (76) | (1,552) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (14,842) | 4,303 | 1,003 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 3,562 | (936) | (376) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (11,280) | 3,367 | 627 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (2,989) | 4,640 | 1,358 | |
Other Comprehensive Income (Loss), Tax | 717 | (1,445) | (509) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (2,272) | 3,195 | 849 | |
Other Comprehensive Income (Loss), Net of Tax | (13,552) | 6,562 | 1,476 | |
Ending Balance | (7,066) | 6,486 | (76) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Actuarial Losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Pension Settlement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Exchange Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (1,713) | 4,795 | 357 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Commodity Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (149) | 96 | 258 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (1,127) | (251) | 743 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (229,830) | (275,206) | (313,035) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (45,678) | 43,802 | 43,947 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 10,963 | (10,556) | (16,480) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (34,715) | 33,246 | 27,467 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 14,247 | 17,530 | 16,579 | |
Other Comprehensive Income (Loss), Tax | (3,419) | (5,400) | (6,217) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 10,828 | 12,130 | 10,362 | |
Other Comprehensive Income (Loss), Net of Tax | (23,887) | 45,376 | 37,829 | |
Ending Balance | (253,717) | (229,830) | (275,206) | |
Accumulated Defined Benefit Plans Adjustment [Member] | Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (550) | (1,255) | (2,474) |
Accumulated Defined Benefit Plans Adjustment [Member] | Actuarial Losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 14,797 | 18,785 | 19,053 |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Settlement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Foreign Exchange Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Commodity Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 0 | $ 0 | $ 0 | |
[1] | (2) Amounts reclassified to net income are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 16 for information related to pension and postretirement benefit plans. | |||
[2] | (1) Amounts reclassified to net income are included in net sales or cost of goods sold. See Note 15 for information related to derivative financial instruments. |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | Jun. 30, 2019USD ($) |
Hurricane Consideration | $ 8.7 |
Hurricane Contingent Consideration | 2 |
Hurricane Goodwill | 6.7 |
Hurricane Intangible Assets | $ 4.4 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Fair Value Measurements Using Level 1 [Member] | ||
Assets, Derivatives | $ 0 | $ 0 |
Liabilities, Derivatives | 0 | 0 |
Fair Value Measurements Using Level 2 [Member] | ||
Assets, Derivatives | 1,564 | 7,938 |
Liabilities, Derivatives | 12,014 | 231 |
Fair Value Measurements Using Level 3 [Member] | ||
Assets, Derivatives | 0 | 0 |
Liabilities, Derivatives | $ 0 | $ 0 |
Fair Value Fair Value of Financ
Fair Value Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Fair Value Disclosures [Abstract] | ||
Long-Term Debt | $ 195,464 | $ 200,888 |
Long-Term Debt, Fair Value | 203,593 | 214,000 |
Short-term Debt | 160,540 | 48,036 |
Short-term Debt, Fair Value | $ 160,540 | $ 48,036 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 131.4 | $ 131.4 | $ 131.4 |
Amortization of Intangible Assets | $ 3.3 | $ 3.4 | $ 3.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Goodwill [Line Items] | ||
Beginning Goodwill Balance | $ 163,200 | $ 161,649 |
Acquisition | 6,786 | |
Effect of Translation | (304) | (1,022) |
Ending Goodwill Balance | 169,682 | 163,200 |
Engines [Member] | ||
Goodwill [Line Items] | ||
Beginning Goodwill Balance | 137,392 | 138,074 |
Acquisition | 0 | |
Effect of Translation | (297) | (682) |
Ending Goodwill Balance | 137,095 | 137,392 |
Products [Member] | ||
Goodwill [Line Items] | ||
Beginning Goodwill Balance | 25,808 | 23,575 |
Acquisition | 6,786 | |
Effect of Translation | (7) | (340) |
Ending Goodwill Balance | $ 32,587 | $ 25,808 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Amortized Intangible Assets, Gross Carrying Amount | $ 64,973 | $ 61,434 |
Amortized Intangible Assets, Accumulated Amortization | (28,767) | (25,517) |
Amortized Intangible Assets, Net | 36,206 | 35,917 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 60,532 | 59,947 |
Total Intangible Assets, Gross Carrying Amount | 125,505 | 121,381 |
Other Intangible Assets, Net | 96,738 | 95,864 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 64,667 | 63,967 |
Loss (Gain) due to Effect of Translation | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 4,135 | 4,020 |
Patents [Member] | ||
Amortized Intangible Assets, Gross Carrying Amount | 9,600 | 7,300 |
Amortized Intangible Assets, Accumulated Amortization | (7,410) | (6,813) |
Amortized Intangible Assets, Net | 2,190 | 487 |
Customer Relationships [Member] | ||
Amortized Intangible Assets, Gross Carrying Amount | 61,381 | 60,182 |
Amortized Intangible Assets, Accumulated Amortization | (21,634) | (18,995) |
Amortized Intangible Assets, Net | 39,747 | 41,187 |
Other Intangible Assets [Member] | ||
Amortized Intangible Assets, Gross Carrying Amount | 854 | 839 |
Amortized Intangible Assets, Accumulated Amortization | (513) | (774) |
Amortized Intangible Assets, Net | 341 | 65 |
Loss (Gain) due to Effect of Translation | ||
Amortized Intangible Assets, Gross Carrying Amount | 6,862 | 6,887 |
Amortized Intangible Assets, Accumulated Amortization | (790) | (1,065) |
Amortized Intangible Assets, Net | $ 6,072 | $ 5,822 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense Of Other Intangible Assets) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 2,790 |
2020 | 2,790 |
2021 | 2,790 |
2022 | 2,790 |
2023 | 2,790 |
Total amortization expense | $ 13,950 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Re-measurement of deferred tax assets and liabilities related to Tax Cuts and Jobs Act | $ 13.8 | ||
Tax expense related to the deemed repatriation of previously undistributed foreign earnings related to the Tax Cuts and Jobs Act | 7.3 | ||
Deferred Tax Assets, Gross | 170.2 | $ 130.1 | |
Deferred Tax Liabilities, Gross | 127.2 | 118 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 6.7 | ||
Deferrred Tax asset, Operating Loss Carryforwards, Foreign | 4.6 | ||
Deferred tax assets foreign income tax loss carryforwards and tax incentives | 11.4 | ||
Deferred tax assets foreign not utilized, not subject to expiration | 9.1 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 2.3 | ||
Deferred tax as result of state income tax loss and state incentive tax, credit carryforwards | $ 59.5 | ||
Tax credit expiration dates not utilized against future taxable income | 2019 and 2039 | ||
Deferred tax assets, valuation allowances | $ 12.4 | ||
State tax credits not useable against future state income taxes | 22.8 | ||
Unrecognized tax benefits that would impact effective tax rate | 6.7 | ||
Reasonable possibility of current remaining unrecognized tax benefit being recognized | 0.4 | ||
Unrecognized tax benefits, income tax penalties and interest expense (income) | 0.1 | (0.2) | $ (0.2) |
Unrecognized tax benefits, income tax penalties and interest accrued | 0.9 | 0.8 | |
Liability for uncertain tax positions, noncurrent | $ 7.8 | $ 6.7 |
Income Taxes Income Taxes (Sche
Income Taxes Income Taxes (Schedule of Income (Loss) before Income Tax, U.S. and Foreign) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income before Income Taxes, U.S. | $ (73,878) | $ (5,350) | $ 66,555 |
Income before Income Taxes, Foreign | 5,780 | 16,451 | 13,106 |
Income Before Income Taxes | $ (68,098) | $ 11,101 | $ 79,661 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provisions for Income Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ (1,488) | $ (12,072) | $ 7,333 |
State | 1,473 | (4,413) | 933 |
Foreign | 4,469 | 3,556 | 4,429 |
Current Total | 4,454 | (12,929) | 12,695 |
Deferred Federal Income Tax Expense (Benefit) | (16,855) | 31,235 | 8,156 |
Deferred State and Local Income Tax Expense (Benefit) | (2,653) | 4,462 | 583 |
Deferred Foreign Income Tax Expense (Benefit) | 1,039 | (347) | 1,577 |
Deferred | (18,469) | 35,350 | 10,316 |
Provision (credit) for income taxes | $ (14,015) | $ 22,421 | $ 23,011 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 3 Months Ended | 12 Months Ended | ||||
Oct. 01, 2017 | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |||
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, at U.S. Statutory Income Tax Rate | 21.00% | 28.00% | 35.00% | |||
Effective Income Tax Rate Reconciliation, State Taxes Net of Federal Benefit | 4.00% | 3.70% | 1.50% | |||
Effective Income Tax Rate Reconciliation, Impact of Foreign Operations and Tax Rates | 0.20% | (2.50%) | (2.10%) | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (8.60%) | 6.70% | 5.30% | |||
Effective Income Tax Rate Reconciliation, Changes to Unrecognized Tax Benefits | (2.80%) | 1.30% | (4.50%) | |||
U. S. Manufacturers Deduction | 0.00% | 0.00% | (2.40%) | |||
Research & Development Credit | 9.90% | [1] | (25.20%) | [1] | (3.10%) | |
Effective Income Tax Rate Reconciliation, Return to Provision Adjustment, Percent | (0.30%) | 15.60% | (0.40%) | |||
Effective Income Tax Rate Reconciliation, U.S. Tax Reform, Percent | (1.40%) | 189.90% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Impact of JV Business Optimization, Percent | (0.60%) | 4.50% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Worthless Stock Loss, Percent | 0.00% | (10.80%) | 0.00% | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Charitable Contributions, Percent | 0.00% | 9.50% | 0.00% | |||
Effective Income Tax Rate Reconciliation, Other Net | (0.80%) | 0.20% | (0.40%) | |||
Effective Tax Rate | 20.60% | 201.90% | 28.90% | |||
[1] |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Pension Cost | $ 22,425 | $ 14,570 |
Accumulated Depreciation | (57,073) | (53,103) |
Intangibles | (34,883) | (34,166) |
Accrued Employee Benefits | 34,982 | 34,108 |
Postretirement Health Care Obligation | 6,300 | 7,275 |
Inventory | 11,396 | 10,710 |
Warranty | 11,351 | 10,842 |
Payroll & Workers Compensation Accruals | 4,828 | 6,474 |
Valuation Allowance | (35,271) | (28,537) |
Net Operating Loss State Credit Carryforwards | 70,953 | 39,849 |
Other Accrued Liabilities | 7,414 | 6,205 |
Miscellaneous | 548 | (2,359) |
Deferred Income Tax Asset (Liability) | $ 42,970 | $ 11,868 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |||
Gross Unrecognized Tax Benefits Beginning Balance | $ 5,899 | $ 5,986 | $ 10,922 |
Changes based on tax positions related to prior year | 0 | 0 | (861) |
Additions based on tax positions related to current year | 2,382 | 981 | 461 |
Settlements with taxing authorities | 0 | 0 | (4,437) |
Lapse of statute of limitations | (1,306) | (1,068) | (99) |
Gross Unrecognized Tax Benefits Ending Balance | $ 6,975 | $ 5,899 | $ 5,986 |
Segment and Geographic Inform_3
Segment and Geographic Information and Significant Customers (Schedules of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
GROSS PROFIT | $ 301,051 | $ 398,082 | $ 383,829 |
SEGMENT INCOME (LOSS) | (39,196) | 32,109 | 94,823 |
Income from Operations | (39,196) | 32,109 | 94,823 |
Interest Expense | (29,242) | (25,320) | (20,293) |
OTHER INCOME, Net | 340 | 4,312 | 5,131 |
Income Before Income Taxes | (68,098) | 11,101 | 79,661 |
PROVISION FOR INCOME TAXES | (14,015) | 22,421 | 23,011 |
Net Income (Loss) | (54,083) | (11,320) | 56,650 |
Assets | 1,551,431 | 1,443,966 | 1,450,979 |
CAPITAL EXPENDITURES | 52,454 | 103,203 | 83,141 |
DEPRECIATION AND AMORTIZATION | 64,200 | 58,258 | 56,183 |
Engines [Member] | |||
GROSS PROFIT | 193,069 | 252,645 | 262,036 |
SEGMENT INCOME (LOSS) | (15,519) | 9,593 | 81,641 |
Assets | 952,820 | 965,677 | 987,943 |
CAPITAL EXPENDITURES | 31,680 | 79,724 | 67,218 |
DEPRECIATION AND AMORTIZATION | 48,932 | 44,361 | 44,384 |
Products [Member] | |||
GROSS PROFIT | 108,984 | 144,933 | 121,141 |
SEGMENT INCOME (LOSS) | (22,675) | 22,012 | 12,530 |
Assets | 646,417 | 547,540 | 551,207 |
CAPITAL EXPENDITURES | 20,774 | 23,479 | 15,923 |
DEPRECIATION AND AMORTIZATION | 15,268 | 13,897 | 11,799 |
Eliminations [Member] | |||
GROSS PROFIT | (1,002) | 504 | 652 |
SEGMENT INCOME (LOSS) | (1,002) | 504 | 652 |
Assets | $ (47,806) | $ (69,251) | $ (88,171) |
Segment and Geographic Inform_4
Segment and Geographic Information and Significant Customers Segment and Geographical Information and Significant Customers (Restructuring Charges, Acquisition-related Charges, and Pension Settlement Charges Impact on Gross Profit by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Cost Of Goods Sold Restructuring Charges, Acquisition-related Charges, and Pension Settlement Charges | $ 11,869 | $ 6,629 | $ 0 |
Engines [Member] | |||
Cost Of Goods Sold Restructuring Charges, Acquisition-related Charges, and Pension Settlement Charges | 2,662 | 2,854 | 0 |
Products [Member] | |||
Cost Of Goods Sold Restructuring Charges, Acquisition-related Charges, and Pension Settlement Charges | $ 9,207 | $ 3,775 | $ 0 |
Segment and Geographic Inform_5
Segment and Geographic Information and Significant Customers Segment Information (Schedule of Restructuring, Acquisition-Related, Impairment, Pension Settlement and Litigation Settlement Impact on Segment Income (Loss) By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Restructuring, Acquisition Related, Goodwill & Tradename Impairment, Pension Settlement Charges, and Litigation Settlement Charges | $ 51,797 | $ 62,026 | $ 0 |
Engines [Member] | |||
Restructuring, Acquisition Related, Goodwill & Tradename Impairment, Pension Settlement Charges, and Litigation Settlement Charges | 29,149 | 53,913 | 0 |
Products [Member] | |||
Restructuring, Acquisition Related, Goodwill & Tradename Impairment, Pension Settlement Charges, and Litigation Settlement Charges | $ 22,648 | $ 8,113 | $ 0 |
Segment and Geographic Inform_6
Segment and Geographic Information and Significant Customers (Schedule of Company's Property Plant and Equipment Based on Geographic Location) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 |
Property, Plant and Equipment, Net | $ 411,045 | $ 422,080 | $ 364,880 |
United States | |||
Property, Plant and Equipment, Net | 392,146 | 405,808 | 347,664 |
All Other Countries [Member] | |||
Property, Plant and Equipment, Net | $ 18,899 | $ 16,272 | $ 17,216 |
Segment and Geographic Inform_7
Segment and Geographic Information and Significant Customers (Schedule of Revenue by Major Customers by Reporting Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Minimum percentage of net sales to be considered a major customer | 10.00% | ||
Net Sales | $ 1,836,605 | $ 1,881,294 | $ 1,786,103 |
Percentage of Net Sales | 20.00% | 20.00% | 23.00% |
customer concentration total | $ 376,410 | $ 413,221 | |
HOP [Member] | |||
Net Sales | $ 139,920 | $ 184,008 | $ 207,882 |
Percentage of Net Sales | 8.00% | 10.00% | 12.00% |
Customer Concentration Risk [Member] | |||
customer concentration total | $ 360,634 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Leases [Abstract] | |||
Rental expense | $ 20,100 | $ 20,000 | $ 19,300 |
Operating leases future minimum lease commitments, 2019 | 20,453 | ||
Operating leases future minimum lease commitments, 2020 | 18,179 | ||
Operating leases future minimum lease commitments, 2021 | 14,784 | ||
Operating leases future minimum lease commitments, 2022 | 10,345 | ||
Operating leases future minimum lease commitments, 2023 | 9,515 | ||
Operating leases future minimum lease commitments, Thereafter | 73,639 | ||
Total future minimum lease commitments | $ 146,915 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | Mar. 25, 2016 | Dec. 20, 2010 | |
Statement [Line Items] | |||||
Payments of Debt Issuance Costs | $ 0 | $ 1,154,000 | $ 0 | ||
Credit agreement, interest rate description | Borrowings under the Revolver by the Company bear interest at a rate per annum equal to, at its option, either:(1) a 1, 2, 3 or 6 month LIBOR rate plus a margin varying from 1.25% to 2.25%, depending on the Company’s average net leverage ratio; or(2) the higher of (a) the federal funds rate plus 0.50%; (b) the bank's prime rate; or (c) the adjusted LIBOR rate for a one-month interest period plus 1.00% plus a margin varying from 0.25% to 1.25%. In addition, the Company is subject to a 0.18% to 0.35% commitment fee and a 1.25% to 2.25% letter of credit fee, depending on the Company’s average net leverage ratio. | ||||
Intercompany Loan to Investment Fund | $ 16,000,000 | ||||
SunTrust contribution to Investment Fund | 8,000,000 | ||||
Debt issuance costs related to New Markets Tax Credit | 1,200,000 | ||||
Restricted cash related to New Markets Tax Credit | 800,000 | ||||
6.875% Senior Notes [Member] | |||||
Statement [Line Items] | |||||
Senior Notes | $ 195,464,000 | 200,888,000 | $ 225,000,000 | ||
Debt instrument, interest rate | 6.875% | ||||
Debt Instruments Maturity Date | Dec. 15, 2020 | ||||
Debt Instrument, Repurchase Amount | $ 5,000,000 | 0 | $ 22,000,000 | ||
Multicurrency Credit Agreement [Member] | |||||
Statement [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | ||||
Date revolving credit facility borrowings are due and payable | Mar. 25, 2021 | ||||
Line of Credit Facility Increased Available Maximum Borrowing Capacity | $ 250,000,000 | ||||
Payments of Debt Issuance Costs | 900,000 | ||||
Credit agreement interest rate margin on federal funds rate | 0.50% | ||||
Credit Agreement rate added to Adjusted LIBO rate for one-month period | 1.00% | ||||
Revolver balance | $ 161,000,000 | $ 48,000,000 | |||
Minimum [Member] | Multicurrency Credit Agreement [Member] | |||||
Statement [Line Items] | |||||
Credit agreement interest rate margin on LIBOR | 1.25% | ||||
Line Of Credit Facility Interest Rate Margin On Adjusted Libor | 0.25% | ||||
Commitment fee percentage | 0.18% | ||||
Letter of credit fee percentage | 1.25% | ||||
Maximum [Member] | Multicurrency Credit Agreement [Member] | |||||
Statement [Line Items] | |||||
Credit agreement interest rate margin on LIBOR | 2.25% | ||||
Line Of Credit Facility Interest Rate Margin On Adjusted Libor | 1.25% | ||||
Commitment fee percentage | 0.35% | ||||
Letter of credit fee percentage | 2.25% |
Indebtedness (Schedule of Long-
Indebtedness (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 20, 2010 |
Debt Instrument [Line Items] | |||
Debt, Current | $ 160,540 | $ 48,025 | |
Note Payable, New Markets Tax Credits | 8,505 | 8,694 | |
Long-Term Debt | 194,969 | 199,954 | |
Multicurrency Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit, Current | 160,540 | 48,025 | |
Notes Payable, Other Payables [Member] | |||
Debt Instrument [Line Items] | |||
Note Payable, New Markets Tax Credits | 7,685 | 7,685 | |
Unamortized Debt Issuance Expense | 820 | 1,009 | |
6.875% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | 195,464 | 200,888 | $ 225,000 |
Unamortized Debt Issuance Expense | $ 495 | $ 934 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Other Income and Expenses [Abstract] | |||
Interest Income | $ 520 | $ 1,526 | $ 1,203 |
Gain on Sale of Investment in Marketable Securities | 3,300 | ||
Other Items | (180) | 2,786 | 3,928 |
Total | $ 340 | $ 4,312 | $ 5,131 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Loss Contingency, Compensatory Damages Awarded, Value | $ 24.3 |
Loss Contingency, Enhanced Damages Awarded, Value | 24.3 |
Loss Contingency, Damages Awarded, Value | $ 1.5 |
Stock Incentives (Narrative Inc
Stock Incentives (Narrative Incentive Compensation Programs) (Details) - Incentive Compensation Plan [Member] - shares | Oct. 25, 2017 | Aug. 22, 2017 | Oct. 15, 2014 | Oct. 21, 2009 | Oct. 20, 2004 |
Common stock reserved for future issuance | 4,700,000 | 3,760,000 | 2,481,494 | ||
Common Stock, Capital Shares Reserved for Future Issuance remaining | 494,315 | ||||
2-For-1 Stock Split [Member] | |||||
Common stock reserved for future issuance | 8,000,000 | ||||
Stock split | 2 |
Stock Incentives Stock Incentiv
Stock Incentives Stock Incentives (Narrative Other) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
stock compensation expense | $ 7,200 | $ 6,700 | $ 4,900 | |
company share based comp expense | 7,180 | 6,675 | 4,923 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 100 | 500 | 1,500 | |
Proceeds from Stock Options Exercised | 1,823 | 3,772 | $ 7,770 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 5,100 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 9,900 | $ 7,700 | ||
Deferred Compensation Liability, Classified, Noncurrent | $ 4,800 | |||
Deferred Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,902 | |||
Deferred Stock [Member] | Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 55,877 | 46,120 | 45,307 | |
Deferred Stock [Member] | Officers And Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Grant Date Fair Value | $ 200 | $ 300 | $ 300 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,902 | 13,476 | 15,131 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Grant Date Fair Value | $ 2,900 | $ 3,100 | $ 3,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 138,550 | 148,930 | 160,130 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 |
Stock Incentives (Schedule of A
Stock Incentives (Schedule of Assumptions Used to Determine Fair Value) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant Date Fair Value | $ 5.46 | $ 4.64 | $ 3.84 |
Risk-free Interest Rate | 2.70% | 1.80% | 1.20% |
Expected Volatility | 32.90% | 30.70% | 29.30% |
Expected Dividend Yield | 2.70% | 2.70% | 2.90% |
Expected Term (In Years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Stock Incentives (Schedule of O
Stock Incentives (Schedule of Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Beginning Balance, Shares | 2,158,927 | 1,927,247 | 1,844,543 |
Granted During the Year, Stock Options | 367,870 | 416,210 | 496,880 |
Exercised During the Year, Stock Options | (87,398) | (184,530) | (414,176) |
Expired During the Year, Stock Options | (112,929) | ||
Ending Balance, Shares | 2,268,080 | 2,158,927 | 1,927,247 |
Exercisable, Shares | 1,005,090 | ||
Beginning balance, Weighted Average Exercise Price | $ 19.64 | $ 19.55 | $ 19.48 |
Granted During the Year, Weighted Average Exercise Price | 20.96 | 20.47 | 19.15 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 20.82 | 20.44 | 18.76 |
Expired During the Year, Weighted Average Exercise Price | 20.82 | ||
Ending balance, Weighted Average Exercise Price | 19.78 | $ 19.64 | $ 19.55 |
Exercisable, Weighted Average Exercise Price | $ 19.36 | ||
Ending Balance, Weighted Average Remaining Contractual Term, Years | 7 years 10 days | ||
Exercisable, Weighted Average Remaining Contractual Term, Years | 5 years 8 months 23 days | ||
Ending Balance, Aggregate Intrinsic Value | $ 0 | ||
Exercisable, Aggregate Intrinsic Value | $ 0 |
Stock Incentives (Schedule of G
Stock Incentives (Schedule of Grant Summary) (Details) - $ / shares | 12 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Exercise Price | $ 19.78 | $ 19.64 | $ 19.55 | $ 19.48 | |
Options Outstanding | 2,268,080 | 2,158,927 | 1,927,247 | 1,844,543 | |
Stock Options [Member] | |||||
Grant Date | Aug. 20, 2018 | Aug. 21, 2017 | Aug. 22, 2016 | Aug. 18, 2015 | Oct. 21, 2014 |
Date Exercisable | Aug. 20, 2021 | Aug. 21, 2020 | Aug. 22, 2019 | Aug. 18, 2018 | Oct. 21, 2017 |
Expiration Date | Feb. 20, 2028 | Aug. 21, 2027 | Aug. 22, 2026 | Aug. 18, 2025 | Oct. 21, 2024 |
Exercise Price | $ 20.96 | $ 20.47 | $ 19.15 | $ 19.90 | $ 18.83 |
Options Outstanding | 367,870 | 416,210 | 496,880 | 501,990 | 543,520 |
Stock Incentives (Summary of No
Stock Incentives (Summary of Nonvested Shares) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Granted During the Year, Stock Options | 367,870 | 416,210 | 496,880 |
Deferred Stock [Member] | |||
Nonvested shares, Beginning balance, Shares | 78,821 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,902 | ||
Other Than Options Cancelled, Shares | 0 | ||
Other Than Options Vested, Shares | (36,442) | ||
Nonvested shares, Ending balance, Shares | 53,281 | 78,821 | |
Nonvested shares, Beginning balance, Weighted Average Grant Date Fair Value | $ 19.52 | ||
Other Than Options Granted, Weighted Average Grant Date Fair Value | 20.03 | ||
Other Than Options Cancelled, Weighted Average Grant Date Fair Value | 0 | ||
Other Than Options Vested, Weighted Average Grant Date Fair Value | 19.13 | ||
Nonvested shares, Ending balance, Weighted Average Grant Date Fair Value | $ 19.89 | $ 19.52 | |
Restricted Stock [Member] | |||
Nonvested shares, Beginning balance, Shares | 695,255 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 138,550 | 148,930 | 160,130 |
Other Than Options Cancelled, Shares | (26,940) | ||
Other Than Options Vested, Shares | (265,255) | ||
Nonvested shares, Ending balance, Shares | 541,610 | 695,255 | |
Nonvested shares, Beginning balance, Weighted Average Grant Date Fair Value | $ 19.87 | ||
Other Than Options Granted, Weighted Average Grant Date Fair Value | 20.73 | ||
Other Than Options Cancelled, Weighted Average Grant Date Fair Value | 20.77 | ||
Other Than Options Vested, Weighted Average Grant Date Fair Value | 19.54 | ||
Nonvested shares, Ending balance, Weighted Average Grant Date Fair Value | $ 20.20 | $ 19.87 | |
Stock Options [Member] | |||
Nonvested shares, Beginning balance, Shares | 1,415,080 | ||
Granted During the Year, Stock Options | 367,870 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (17,970) | ||
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCancelledInPeriodWeightedAverageGrantDateFairValue | $ 3.84 | ||
Stock Options Vested, Shares | (501,990) | ||
Nonvested shares, Ending balance, Shares | 1,262,990 | 1,415,080 | |
Nonvested shares, Beginning balance, Weighted Average Grant Date Fair Value | 4.03 | ||
Options Granted, Weighted Average Grant Date Fair Value | $ 5.46 | $ 4.64 | $ 3.84 |
Options Vested, Weighted Average Grant Date Fair Value | $ 3.72 | ||
Nonvested shares, Ending balance, Weighted Average Grant Date Fair Value | 4.58 | 4.03 | |
Performance Shares [Member] | |||
Nonvested shares, Beginning balance, Shares | 106,440 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | |
Other Than Options Cancelled, Shares | 0 | ||
Other Than Options Vested, Shares | (106,440) | ||
Nonvested shares, Ending balance, Shares | 0 | 106,440 | |
Nonvested shares, Beginning balance, Weighted Average Grant Date Fair Value | $ 19.90 | ||
Other Than Options Granted, Weighted Average Grant Date Fair Value | 0 | ||
Other Than Options Cancelled, Weighted Average Grant Date Fair Value | 0 | ||
Other Than Options Vested, Weighted Average Grant Date Fair Value | 19.90 | ||
Nonvested shares, Ending balance, Weighted Average Grant Date Fair Value | $ 0 | $ 19.90 |
Stock Incentives (Schedule of S
Stock Incentives (Schedule of Stock-Based Compensation Programs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
company share based comp expense | $ 7,180 | $ 6,675 | $ 4,923 |
Tax benefit | (1,739) | (1,867) | (1,846) |
Compensation expense, net of tax | 5,441 | 4,808 | 3,077 |
Stock Options [Member] | |||
Pretax stock based compensation expense | 2,275 | 2,060 | 1,862 |
Tax benefit | (553) | (576) | (698) |
Compensation expense, net of tax | 1,722 | 1,484 | 1,164 |
Restricted Stock [Member] | |||
Pretax stock based compensation expense | 3,697 | 3,302 | 3,291 |
Tax benefit | (848) | (924) | (1,234) |
Compensation expense, net of tax | 2,849 | 2,378 | 2,057 |
Deferred Stock [Member] | |||
Pretax stock based compensation expense | 1,208 | 1,046 | 585 |
Tax benefit | (338) | (292) | (220) |
Compensation expense, net of tax | 870 | 754 | 365 |
Performance Shares [Member] | |||
Pretax stock based compensation expense | 0 | 267 | (815) |
Tax benefit | 0 | (75) | 306 |
Compensation expense, net of tax | $ 0 | $ 192 | $ (509) |
Derivative Instruments & Hedg_3
Derivative Instruments & Hedging Activities Derivative Instruments & Hedging Activities Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Derivative [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 800 | |
Interest Rate Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 230,000 | $ 110,000 |
Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative, Lower Fixed Interest Rate Range | 0.98% | |
Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, Lower Fixed Interest Rate Range | 2.83% |
Derivative Instruments & Hedg_4
Derivative Instruments & Hedging Activities Outstanding Derivative Contracts (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, R$ in Thousands, BTU in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Jun. 30, 2019USD ($)BTU | Jun. 30, 2019EUR (€)BTU | Jun. 30, 2019CNY (¥)BTU | Jun. 30, 2019BRL (R$)BTU | Jun. 30, 2019JPY (¥)BTU | Jun. 30, 2019CAD ($)BTU | Jun. 30, 2019AUD ($)BTU | Jul. 01, 2018USD ($)BTU | Jul. 01, 2018EUR (€)BTU | Jul. 01, 2018CNY (¥)BTU | Jul. 01, 2018BRL (R$)BTU | Jul. 01, 2018JPY (¥)BTU | Jul. 01, 2018CAD ($)BTU | Jul. 01, 2018AUD ($)BTU |
Interest Rate Contracts [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 230,000 | $ 110,000 | ||||||||||||
Australian Dollar, Sell [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 17,611 | $ 35,833 | ||||||||||||
Brazilian Real, Buy [Member] [Domain] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | R$ 13436 | R$ 28822 | $ 28,822 | |||||||||||
Canadian Dollar, Sell [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 14,610 | $ 14,430 | ||||||||||||
Chinese Renminbi, Buy [Member] [Domain] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | ¥ 70,555 | ¥ 62,209 | ¥ 62,209 | |||||||||||
Euro, Sell [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | € | € 2,750 | € 32,592 | ||||||||||||
Japanese Yen, Buy [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | ¥ | ¥ 0 | ¥ 587,500 | ||||||||||||
Natural Gas [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Nonmonetary Notional Amount | BTU | 7,627 | 7,627 | 7,627 | 7,627 | 7,627 | 7,627 | 7,627 | 10,553 | 10,553 | 10,553 | 10,553 | 10,553 | 10,553 | 10,553 |
Derivative Instruments & Hedg_5
Derivative Instruments & Hedging Activities Impact of Derivative Contracts on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (10,451) | $ 7,707 |
Other Long-Term Assets, Net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Contracts at Fair Value | 876 | 3,844 |
Foreign Currency Contracts at Fair Value | 16 | 31 |
Commodity Contracts at Fair Value | 0 | 5 |
Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Contracts at Fair Value | (11,634) | 0 |
Foreign Currency Contracts at Fair Value | (11) | 0 |
Commodity Contracts at Fair Value | (15) | (29) |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Contracts at Fair Value | 0 | 161 |
Foreign Currency Contracts at Fair Value | 672 | 3,881 |
Commodity Contracts at Fair Value | 0 | 16 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Contracts at Fair Value | (179) | (195) |
Commodity Contracts at Fair Value | $ (176) | $ (7) |
Derivative Instruments & Hedg_6
Derivative Instruments & Hedging Activities Impact of Derivative Contracts on Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Interest Rate Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (3,307) | $ 1,921 | $ 1,973 |
Interest Rate Contracts [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,127 | 251 | (743) |
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 |
Foreign Currency Contract Sell [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1,604) | 2,925 | (887) |
Foreign Currency Contract Sell [Member] | Net Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,139 | (4,116) | 1,785 |
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 |
Foreign Currency Contract Buy [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (1,039) | 1,731 | 297 |
Foreign Currency Contract Buy [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 574 | (679) | (2,142) |
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 |
Commodity Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (133) | (17) | 93 |
Commodity Contract [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 149 | (96) | (258) |
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | $ 0 | $ 0 | $ 0 |
Foreign Exchange Risk Managemen
Foreign Exchange Risk Management (Schedule of Forward Currency Contracts Outstanding) (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||
Jun. 30, 2019USD ($) | Jul. 01, 2018USD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019BRL (R$) | Jun. 30, 2019JPY (¥) | Jun. 30, 2019CAD ($) | Jun. 30, 2019AUD ($) | Jul. 01, 2018EUR (€) | Jul. 01, 2018CNY (¥) | Jul. 01, 2018BRL (R$) | Jul. 01, 2018JPY (¥) | Jul. 01, 2018CAD ($) | Jul. 01, 2018AUD ($) | |
Australian Dollar, Sell [Member] | ||||||||||||||
Derivative, Notional Amount | $ 17,611 | $ 35,833 | ||||||||||||
Contract Value | $ 12,660 | $ 27,880 | ||||||||||||
Fair Value | 12,329 | 26,558 | ||||||||||||
(Gain) Loss at Fair Value | $ (331) | $ (1,322) | ||||||||||||
Conversion Currency | U.S. | U.S. | ||||||||||||
Brazilian Real, Buy [Member] [Domain] | ||||||||||||||
Derivative, Notional Amount | R$ 13436 | R$ 28822 | $ 28,822 | |||||||||||
Contract Value | $ 3,455 | $ 6,682 | ||||||||||||
Fair Value | 3,461 | 7,571 | ||||||||||||
(Gain) Loss at Fair Value | $ 30 | $ (889) | ||||||||||||
Conversion Currency | U.S. | U.S. | ||||||||||||
Canadian Dollar, Sell [Member] | ||||||||||||||
Derivative, Notional Amount | $ 14,610 | $ 14,430 | ||||||||||||
Contract Value | $ 9,968 | $ 11,393 | ||||||||||||
Fair Value | 11,171 | 11,020 | ||||||||||||
(Gain) Loss at Fair Value | $ 88 | $ (373) | ||||||||||||
Conversion Currency | U.S. | U.S. | ||||||||||||
Chinese Renminbi, Buy [Member] [Domain] | ||||||||||||||
Derivative, Notional Amount | ¥ 70,555 | ¥ 62,209 | ¥ 62,209 | |||||||||||
Contract Value | $ 10,154 | $ 9,234 | ||||||||||||
Fair Value | 10,267 | 9,324 | ||||||||||||
(Gain) Loss at Fair Value | $ (113) | $ (90) | ||||||||||||
Conversion Currency | U.S. | U.S. | ||||||||||||
Euro, Sell [Member] | ||||||||||||||
Derivative, Notional Amount | € | € 2,750 | € 32,592 | ||||||||||||
Contract Value | $ 3,313 | $ 39,648 | ||||||||||||
Fair Value | 3,161 | 38,603 | ||||||||||||
(Gain) Loss at Fair Value | $ (151) | $ (1,045) | ||||||||||||
Conversion Currency | U.S. | U.S. | ||||||||||||
Japanese Yen, Buy [Member] | ||||||||||||||
Derivative, Notional Amount | ¥ | ¥ 0 | ¥ 587,500 | ||||||||||||
Contract Value | $ 5,316 | |||||||||||||
Fair Value | 5,324 | |||||||||||||
(Gain) Loss at Fair Value | $ 0 | |||||||||||||
Conversion Currency | U.S. |
Employee Benefit Costs (Narrati
Employee Benefit Costs (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Payment for Pension Benefits | $ 0 | $ 30,000 | $ 0 |
Accumulated benefit obligation for defined benefit pension plans | $ 998,000 | 959,000 | |
Annual rate of increase in per capita cost of health care claims, current fiscal year | 5.80% | ||
Annual rate of increase in per capita cost of health care claims, ultimate trend rate | 4.50% | ||
Health care claims, year that ultimate trend rate reached | 2038 | ||
Increase in accumulated postretirement benefit due to increase of one percentage point | $ 800 | ||
Increase in service and interest cost due to increase of one percentage point | 41 | ||
Decrease in accumulated postretirement benefit due to decrease of one percentage point | (800) | ||
Decrease in service and interest cost due to decrease of one percentage point | (46) | ||
Pension benefit obligation and offsetting assets removed by annuitizing a portion of the qualified pension plan obligation | 100,000 | ||
Non cash charge related to annuitization of a portion of the qualified pension plan obligation | 41,200 | ||
Non cash charge related to annuitization of a portion of the qualified pension plan obligation, post-tax | 29,600 | ||
Required minimum contributions to qualified pension plan in fiscal 2018 | $ 0 | ||
Nonelective contribution percentage | 3.00% | ||
Employer Contributions | $ 14,900 | ||
Pension Settlement Expense | 521 | 41,157 | 0 |
Other Postretirement Benefits [Member] | |||
Pension Settlement Expense | $ 0 | $ 0 | 0 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.55% | 4.25% | |
Pension Benefits [Member] | |||
Pension Settlement Expense | $ 521 | $ 41,157 | $ 0 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.60% | 4.30% | |
Minimum [Member] | |||
Maximum percentage of participant salary matched | 1.50% | ||
Maximum [Member] | |||
Maximum percentage of participant salary matched | 4.00% |
Employee Benefit Costs (Schedul
Employee Benefit Costs (Schedule of Reconciliation of Obligations, Plan Assets and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Fair Value of Plan Assets at Beginning of Year | $ 765,631 | ||
Fair Value of Plan Assets at End of Year | $ 773,175 | $ 765,631 | |
Pension Benefits [Member] | |||
Discounted Rate Used to Determine Present Value of Projected Benefit Obligation | 3.60% | 4.30% | |
Defined Benefit Plan Assumptions Used Calculating Projected Benefit Obligation Expected Long Term Return On Assets | 6.90% | 7.00% | |
Service Cost | $ 4,541 | $ 2,402 | $ 6,757 |
Interest Cost | 39,720 | 43,068 | 43,357 |
Plan Assets (Less Than) in Excess of Projected Benefit Obligation | (224,510) | (193,366) | |
Accrued Pension Cost | (221,033) | (189,872) | |
Accrued Wages and Salaries | (3,477) | (3,494) | |
Accrued Postretirement Health Care Obligation | 0 | 0 | |
Accrued Liabilities | 0 | 0 | |
Defined Benefit Plan Accrued Employee Benefits | 0 | 0 | |
Net Amount Recognized at End of Year | (224,510) | (193,366) | |
Net Actuarial Loss | (242,565) | (218,066) | |
Prior Service Credit (Cost) | (3) | (125) | |
Net Amount Recognized at End of Year | $ (242,568) | $ (218,191) | |
Other Postretirement Benefits [Member] | |||
Discounted Rate Used to Determine Present Value of Projected Benefit Obligation | 3.55% | 4.25% | |
Service Cost | $ 106 | $ 135 | 191 |
Interest Cost | 2,332 | 2,372 | 2,382 |
Plan Assets (Less Than) in Excess of Projected Benefit Obligation | (54,000) | (58,801) | |
Accrued Pension Cost | 0 | 0 | |
Accrued Wages and Salaries | 0 | 0 | |
Accrued Postretirement Health Care Obligation | (25,929) | (30,186) | |
Accrued Liabilities | (6,760) | (8,418) | |
Defined Benefit Plan Accrued Employee Benefits | (21,311) | (20,197) | |
Net Amount Recognized at End of Year | (54,000) | (58,801) | |
Net Actuarial Loss | (10,571) | (11,815) | |
Prior Service Credit (Cost) | 0 | 433 | |
Net Amount Recognized at End of Year | (10,571) | (11,382) | |
Change In Benefit Obligations [Member] | Pension Benefits [Member] | |||
Projected Benefit Obligation at Beginning of Year | 959,010 | 1,116,705 | |
Service Cost | 4,541 | 2,402 | |
Interest Cost | 39,720 | 43,068 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (1,720) | 101,553 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | |
Actuarial (Gain) Loss | 59,362 | (27,541) | |
Benefits Paid | (63,228) | (74,071) | |
Projected Benefit Obligation at End of Year | 997,685 | 959,010 | 1,116,705 |
Change In Benefit Obligations [Member] | Other Postretirement Benefits [Member] | |||
Projected Benefit Obligation at Beginning of Year | 58,801 | 66,693 | |
Service Cost | 106 | 135 | |
Interest Cost | 2,332 | 2,372 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 2,212 | 2,346 | |
Actuarial (Gain) Loss | 1,364 | (146) | |
Benefits Paid | (10,815) | (12,599) | |
Projected Benefit Obligation at End of Year | 54,000 | 58,801 | 66,693 |
Change In Plan Assets [Member] | Pension Benefits [Member] | |||
Benefits Paid | (63,228) | (74,071) | |
Fair Value of Plan Assets at Beginning of Year | 765,644 | 870,606 | |
Actual Return on Plan Assets | 68,745 | 36,914 | |
Plan Participant Contributions | 0 | 0 | |
Employer Contributions | 3,734 | 33,748 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 1,720 | 101,553 | |
Fair Value of Plan Assets at End of Year | 773,175 | 765,644 | 870,606 |
Change In Plan Assets [Member] | Other Postretirement Benefits [Member] | |||
Benefits Paid | (10,815) | (12,599) | |
Fair Value of Plan Assets at Beginning of Year | 0 | 0 | |
Actual Return on Plan Assets | 0 | 0 | |
Plan Participant Contributions | 2,212 | 2,346 | |
Employer Contributions | 8,603 | 10,253 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Fair Value of Plan Assets at End of Year | $ 0 | $ 0 | $ 0 |
Employee Benefit Costs (Sched_2
Employee Benefit Costs (Schedule of Income and Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Plan Settlements | $ 521 | $ 41,157 | $ 0 |
Pension Benefits [Member] | |||
Service Cost-Benefits Earned During the Year | 4,541 | 2,402 | 6,757 |
Interest Cost on Projected Benefit Obligation | 39,720 | 43,068 | 43,357 |
Expected Return on Plan Assets | (54,327) | (61,912) | (64,427) |
Amortization of Prior Service Cost (Credit) | 179 | 179 | 180 |
Amortization of Actuarial Loss | 11,638 | 15,332 | 16,957 |
Plan Settlements | 521 | 41,157 | 0 |
Net Periodic Expense | 2,272 | 40,226 | 2,824 |
Other Postretirement Benefits [Member] | |||
Service Cost-Benefits Earned During the Year | 106 | 135 | 191 |
Interest Cost on Projected Benefit Obligation | 2,332 | 2,372 | 2,382 |
Expected Return on Plan Assets | 0 | 0 | 0 |
Amortization of Prior Service Cost (Credit) | (729) | (1,434) | (2,654) |
Amortization of Actuarial Loss | 3,159 | 3,453 | 2,796 |
Plan Settlements | 0 | 0 | 0 |
Net Periodic Expense | $ 4,868 | $ 4,526 | $ 2,715 |
Employee Benefit Costs (Sched_3
Employee Benefit Costs (Schedule of Significant Assumptions Used In Determining Net Periodic (Income) Expense) (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Pension Benefits [Member] | |||
Discount Rate | 4.30% | 4.00% | 3.75% |
Expected Return on Plan Assets | 7.05% | 7.10% | 7.25% |
Other Postretirement Benefits [Member] | |||
Discount Rate | 4.25% | 3.85% | 3.60% |
Employee Benefit Costs (Sched_4
Employee Benefit Costs (Schedule of Accumulated Other Comprehensive Income That Are Expected To Be Recognized As Components Of Net Periodic (Income) Expense During The Next Fiscal Year) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Pension Benefits [Member] | |
Prior Service Cost (Credit) | $ (78) |
Net Actuarial Loss | (15,904) |
Other Postretirement Benefits [Member] | |
Prior Service Cost (Credit) | 0 |
Net Actuarial Loss | $ (2,998) |
Employee Benefit Costs (Sched_5
Employee Benefit Costs (Schedule of Company's Pension Plan's Asset Allocations) (Details) | Jun. 30, 2019 | Jul. 01, 2018 |
Plan Assets at Year-End | 100.00% | 100.00% |
Domestic Equities [Member] | ||
Plan Assets at Year-End | 19.00% | 24.00% |
International Equities [Member] | ||
Plan Assets at Year-End | 19.00% | 16.00% |
Alternatives [Member] | ||
Plan Assets at Year-End | 6.00% | 7.00% |
Fixed Income [Member] | ||
Plan Assets at Year-End | 45.00% | 51.00% |
Cash Equivalents [Member] | ||
Plan Assets at Year-End | 2.00% | 2.00% |
Maximum [Member] | Domestic Equities [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% | |
Maximum [Member] | International Equities [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 26.00% | |
Maximum [Member] | Alternatives [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 9.00% | |
Maximum [Member] | Fixed Income [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 53.00% | |
Maximum [Member] | Cash Equivalents [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3.00% | |
Minimum [Member] | Domestic Equities [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 14.00% | |
Minimum [Member] | International Equities [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 14.00% | |
Minimum [Member] | Alternatives [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3.00% | |
Minimum [Member] | Fixed Income [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 37.00% | |
Minimum [Member] | Cash Equivalents [Member] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% |
Employee Benefit Costs (Sched_6
Employee Benefit Costs (Schedule of Inputs and Valuation Techniques Used to Measure Fair Value Of Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | |
Assets at Fair Value | $ 773,175 | $ 765,631 | |
Short-term Investments [Member] | |||
Assets at Fair Value | 11,982 | 17,061 | |
Fixed Income Securities [Member] | |||
Assets at Fair Value | 351,029 | 394,188 | |
U.S. Common Stocks [Member] | |||
Assets at Fair Value | 148,967 | 183,030 | |
International Mutual Funds [Member] | |||
Assets at Fair Value | 149,899 | 118,674 | |
Venture Capital Funds [Member] | |||
Assets at Fair Value | [1],[2] | 20,633 | 26,078 |
Debt Funds [Member] | |||
Assets at Fair Value | [3],[4] | 1,777 | 2,778 |
Real Estate Funds [Member] | |||
Assets at Fair Value | [3],[5] | 770 | 1,166 |
Private Equity Funds [Member] | |||
Assets at Fair Value | [1],[6] | 18,929 | 22,656 |
Fair Value Measurements Using Level 1 [Member] | |||
Assets at Fair Value | 62,901 | 318,765 | |
Fair Value Measurements Using Level 1 [Member] | Short-term Investments [Member] | |||
Assets at Fair Value | 11,982 | 17,061 | |
Fair Value Measurements Using Level 1 [Member] | Fixed Income Securities [Member] | |||
Assets at Fair Value | 0 | 0 | |
Fair Value Measurements Using Level 1 [Member] | U.S. Common Stocks [Member] | |||
Assets at Fair Value | 50,919 | 183,030 | |
Fair Value Measurements Using Level 1 [Member] | International Mutual Funds [Member] | |||
Assets at Fair Value | 0 | 118,674 | |
Fair Value Measurements Using Level 1 [Member] | Venture Capital Funds [Member] | |||
Assets at Fair Value | [1],[2] | 0 | 0 |
Fair Value Measurements Using Level 1 [Member] | Debt Funds [Member] | |||
Assets at Fair Value | [3],[4] | 0 | 0 |
Fair Value Measurements Using Level 1 [Member] | Real Estate Funds [Member] | |||
Assets at Fair Value | [3],[5] | 0 | 0 |
Fair Value Measurements Using Level 1 [Member] | Private Equity Funds [Member] | |||
Assets at Fair Value | [1],[6] | 0 | 0 |
Fair Value Measurements Using Level 2 [Member] | |||
Assets at Fair Value | 283,392 | 394,188 | |
Fair Value Measurements Using Level 2 [Member] | Short-term Investments [Member] | |||
Assets at Fair Value | 0 | 0 | |
Fair Value Measurements Using Level 2 [Member] | Fixed Income Securities [Member] | |||
Assets at Fair Value | 283,392 | 394,188 | |
Fair Value Measurements Using Level 2 [Member] | U.S. Common Stocks [Member] | |||
Assets at Fair Value | 0 | 0 | |
Fair Value Measurements Using Level 2 [Member] | International Mutual Funds [Member] | |||
Assets at Fair Value | 0 | 0 | |
Fair Value Measurements Using Level 2 [Member] | Venture Capital Funds [Member] | |||
Assets at Fair Value | [1],[2] | 0 | 0 |
Fair Value Measurements Using Level 2 [Member] | Debt Funds [Member] | |||
Assets at Fair Value | [3],[4] | 0 | 0 |
Fair Value Measurements Using Level 2 [Member] | Real Estate Funds [Member] | |||
Assets at Fair Value | [3],[5] | 0 | 0 |
Fair Value Measurements Using Level 2 [Member] | Private Equity Funds [Member] | |||
Assets at Fair Value | [1],[6] | 0 | 0 |
Fair Value Measurements Using Level 3 [Member] | |||
Assets at Fair Value | 426,882 | 52,678 | |
Fair Value Measurements Using Level 3 [Member] | Short-term Investments [Member] | |||
Assets at Fair Value | 0 | 0 | |
Fair Value Measurements Using Level 3 [Member] | Fixed Income Securities [Member] | |||
Assets at Fair Value | 67,637 | 0 | |
Fair Value Measurements Using Level 3 [Member] | U.S. Common Stocks [Member] | |||
Assets at Fair Value | 98,048 | 0 | |
Fair Value Measurements Using Level 3 [Member] | International Mutual Funds [Member] | |||
Assets at Fair Value | 149,899 | 0 | |
Fair Value Measurements Using Level 3 [Member] | Venture Capital Funds [Member] | |||
Assets at Fair Value | [1],[2] | 20,633 | 26,078 |
Fair Value Measurements Using Level 3 [Member] | Debt Funds [Member] | |||
Assets at Fair Value | [3],[4] | 1,777 | 2,778 |
Fair Value Measurements Using Level 3 [Member] | Real Estate Funds [Member] | |||
Assets at Fair Value | [3],[5] | 770 | 1,166 |
Fair Value Measurements Using Level 3 [Member] | Private Equity Funds [Member] | |||
Assets at Fair Value | [1],[6] | $ 18,929 | $ 22,656 |
[1] | |||
[2] | This category invests in a combination of public and private securities of companies in financial distress, spin-offs, or new projects focused on technology and manufacturing. | ||
[3] | |||
[4] | This fund primarily invests in the debt of various entities including corporations and governments in emerging markets, mezzanine financing, or entities that are undergoing, are considered likely to undergo or have undergone a reorganization. | ||
[5] | This category invests primarily in real estate related investments, including real estate properties, securities of real estate companies and other companies with significant real estate assets as well as real estate related debt and equity securities. | ||
[6] | Primarily represents investments in all sizes of mostly privately held operating companies in the following core industry sectors: healthcare, energy, financial services, technology-media-telecommunications and industrial and consumer. |
Employee Benefit Costs Employee
Employee Benefit Costs Employee Benefit Costs (Expected Future Benefit Payments) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Qualified Plan [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 63,368 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 63,435 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 63,128 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 62,664 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 62,042 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 293,444 |
Nonqualified Plan [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 3,477 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 3,512 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3,586 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3,619 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 3,653 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 18,316 |
Postretirement Health Coverage [Member] | Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 5,335 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 4,236 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3,632 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3,130 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 2,605 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 7,897 |
Postretirement Life Insurance [Member] | Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 1,425 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 1,432 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 1,437 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 1,437 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 1,435 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 7,004 |
Restructuring Actions Restructu
Restructuring Actions Restructuring Actions (Details) $ in Millions | 12 Months Ended |
Jul. 01, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 0 |
Restructuring Actions Restruc_2
Restructuring Actions Restructuring Reserve Rollforward (Details) $ in Millions | 12 Months Ended |
Jul. 01, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Provisions | $ 0 |
Equity Share Repurchases (Detai
Equity Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 38,000 | ||
Treasury Stock, Shares, Acquired | 725,321 | 467,183 | |
repurchase common stock | $ (11,900) | $ (10,300) | |
Treasury Stock Purchases | $ 11,937 | $ 10,312 | $ 19,680 |
Treasury Stock Acquired, Average Cost Per Share | $ 16.46 | $ 22.07 | |
Fiscal 2016 Share Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 50,000 | ||
Fiscal 2018 Share Repurchase Program [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 50,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Subsequent Event [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 8,866 | $ 1,800 | $ 0 |
Revenue Narrative (Details)
Revenue Narrative (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Variable Consideration Tiered Rebate | $ 12.8 |
Variable Consideration Promotion | 7.7 |
Floor Plan Interest | 11 |
Retailer Bad Debt | $ 4.1 |
Uncategorized Items - bgg-63020
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 89,839,000 |